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Forex - Yen up against dollar after poor U.S. home sales data

Published 06/23/2010, 04:28 AM
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EUR/JPY
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Investing.com – The yen was up against the U.S. dollar on Wednesday, after official data showed that existing home sales in the U.S. fell unexpectedly in May, raising fresh fears over the strength of the global economic recovery.

USD/JPY hit 90.34 during European morning trade, a daily low, the pair subsequently consolidated at around 90.43, shedding 0.16%. The pair was likely to find support at 89.89, the low of May 27, and short-term resistance at 92.11, the high of June 14.

On Tuesday, industry data showed that that existing home sales in the U.S. dropped to a seasonally adjusted 5.66 million units in May, down from 5.79 million in April. The drop in sales came even as mortgage rates were at an all time low.

Economists had expected May's figure to come in at 6.1 million.

The yen was also up against the euro, with EUR/JPY shedding 0.04% to hit 111.10.

Later in the day, the U.S. was to release a report on new home sales, while the U.S. Federal Reserve was to announce its benchmark interest rate, the Federal Funds Rate.

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