Forex - USD/JPY falls on U.S. housing data

Published 03/23/2012, 03:06 PM
Updated 03/23/2012, 03:08 PM
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Investing.com - The dollar fell against the yen on Friday after housing data disappointed in the U.S., although the yen cooled its gains thanks to profit taking.

In U.S. trading on Friday, USD/JPY hit 82.51, down 0.03%, up from a low of 81.99 and off a high of 82.95.

The pair sought to test support at 81.97, the low on March 13, and resistance at 83.47, Thursday's high.

The dollar tanked against the yen early in the session when the Commerce Department reported that new single-family home sales fell 1.6% percent to a seasonally adjusted 313,000-unit annual rate in the U.S, much below expectations for 325,000 units.

January's figures were revised down to 318,000 units from a previous 321,000 reading.

The news came just a few days after the National Association of Realtors reported that total existing-home sales slipped 0.9% to a seasonally adjusted annual rate of 4.59 million in February.

Profit-taking later kicked in, as investors sold the yen and stabilized the pair.

Sentiment that China's economy might not post as heated growth rates going forward has sent Japanese stocks falling in recent sessions and the yen rising.

The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY rising 0.25% to 130.91 and EUR/JPY up 0.42% at 109.41.

On Monday in the U.S., pending home sales are due out, while Japan is due to release retail sales on Sunday.





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