That added to positive sentiment for the greenback which has been supported by the Softbank-Sprint deal and speculation of more easing from the Bank of Japan.
"Dollar/yen is near sensitive levels. Speculative accounts are trying to test the upside now," said Teppei Ino, currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
The dollar rose to a one-week high of 78.865 yen on Monday and last traded at 78.78 yen in Asia, up 0.2 percent from late US trade.
For now the dollar was blocked by option-related selling and many traders are not fully convinced it has a momentum strong enough to break its familiar 77-79 yen trading range.
Still, a substantial break above its Ichimoku cloud top, which lies at 78.90 on Tuesday and Wednesday, could be seen as one of the strongest bullish signs for currency in many months.
Although many traders expect its 77-79 yen trading range to persist, a substantial break above its Ichimoku cloud top, which lies at 78.90 on Tuesday and Wednesday, could be seen as one of the strongest bullish signs for the pair in many months.
In addition, the trendline connecting its April peak of 81.78 and September peak of 79.22 comes in around 78.80, and a clear break of that level would enhance optimism about prospects for the dollar.
The rise in US retail sales in September followed solid sales in August and pointed to resilient US domestic demand despite worries about a global economic slowdown.
"There seems to be pressure piling on the Bank of Japan to take action later this month. People are expecting more stimulus from the BOJ," said Katunori Kitakura, associate general manager of market making at Sumitomo Mitsui Trust Bank, referring to the bank's policy meeting on Oct. 30.
Japanese mobile operator Softbank's $20 billion purchase of US third-largest wireless company Sprint Nextel, the largest foreign acquisition ever by a Japanese firm, has also encouraged dollar buying or at least discouraged yen buying.
But the yen could be resilient due to worries over global growth as it tends to rise at times of economic stress due to Japan's net credit status. Concern over the US fiscal cliff is increasingly in focus as the US Presidential election is just three weeks away.
The euro also rose 0.3 percent in early Asian trade to 102.15 yen but was still in limbo against the dollar due to uncertainty over Spain.
The single currency traded at $1.2968, up slightly from late US levels after volatile Monday trade took it to $1.2979.
Traders say the euro, which has fluctuated around $1.28-1.30 in the past few weeks after hitting a four-month high of $1.31729 last month, may not trade out of this range until they get clearer picture on Spain.
While expectations that Madrid will eventually seek a rescue package have discouraged speculators from betting against the euro aggressively, hopes that it will do so at a European Union summit later this week have dimmed.
Euro zone officials said Spain could ask for financial aid from next month. The request would probably be dealt with alongside a revised loan program for Greece and a bailout for Cyprus in one big package.
As for Greece, traders were equally clueless on where the austerity talk between the country and its international lenders are going.
Prime Minister Antonis Samaras said on Monday Greece will conclude the talks to continue receiving the bailout funds it needs but officials said the talks would most likely not be finished by Thursday's EU summit.
Euro zone officials are also considering new ways to reduce Greece's huge debts because delays to reforms by Athens and continued recession have put the target of a debt to GDP ratio of 120 percent by 2020 out of reach.
The Australian dollar edged up slightly to $1.0267, though it is still below last week's high of $1.0294, showing muted response to the minutes from the Australian central bank's last policy meeting.