Forex - USD/JPY dips on weak U.S. housing data

Published 02/22/2012, 10:36 PM
Updated 02/22/2012, 10:39 PM
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Investing.com - The dollar fell against the yen on Thursday as investors felt the pair had strengthened enough in response to Bank of Japan easing measures last week, while weak housing data out of the U.S. fueled demand for the Japanese currency as well.

In Asian trading on Thursday, USD/JPY hit 80.14, down 0.19%  up from a low of 80.12 and off from a high of 80.35.

The pair sought to test support at 79.78, Wednesday's low, and resistance at 80.40. Wednesday's high.

The Bank of Japan said last week it would allocate JPY10 trillion to an asset-purchasing program and establish inflation goals as a move to weaken the currency.

However, in Asian trading on Thursday, weak housing data and rising oil inventories in the U.S. sparked concerns the world's largest economy is far from recovered from the recent recession, which sent investors restocking up on yen.

In the U.S., the National Association of Realtors reported that existing home sales rose by 4.3% to a seasonally adjusted 4.57 million units in January, below expectations for a gain of 6.2% to 4.67 million units.

The American Petroleum Institute reported that U.S. crude inventories rose last week; less demand for oil often reflects an economy taking a breather.

Official oil inventory figures are due out later Thursday.

The yen, meanwhile, was up against the Australian dollar as well as the euro, with AUD/JPY losing 0.20% to 85.24 and EUR/JPY down 0.14% at 106.24.

Later Thursday, the U.S. will publish government data on initial jobless claims, a key signal of overall economic health, as well as numbers on crude and gasoline inventories.






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