Forex - USD/JPY extends losses after weak U.S. house price data

Published 11/30/2010, 09:42 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar extended losses against the yen on Tuesday, tumbling to a 3-day low after industry data showed that U.S. home prices rose less-than-expected in September.

USD/JPY hit 83.43 during European afternoon trade, the pair’s lowest since November 25; the pair subsequently consolidated at 83.58, tumbling 0.78%.

The pair was likely to find support at 82.93, the low of November 24 and resistance at 84.39, Monday’s high.

The Standard & Poor's/Case-Shiller house price index index rose 0.6% in September, after rising 1.7% in August. Analysts expected the house price index to rise by 1.0% in September.

The report also showed that the index declined by 2.0% in the third quarter, after rising by 4.7% in the preceding quarter.

David M. Blitzer, Chairman of the Index Committee at S&P said “a sustained recovery could be a ways off.”

Also Tuesday, official data showed that Japan’s industrial production decreased less-than-expected in October, while the unemployment rate rose unexpectedly.

The yen was also sharply higher against the euro, with EUR/JPY plummeting 1.86% to hit 108.53.

Later in the day, the U.S. was to publish data on consumer confidence and an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement.

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