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USD/JPY edges lower on mixed U.S. data

Published 03/25/2014, 02:29 PM
Updated 03/25/2014, 02:30 PM
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Investing.com - The dollar traded slightly lower against the yen on Tuesday in choppy trading as investors digested strong U.S. consumer confidence data and spotty housing indicators that sent the pair jumping in and out of positive territory.

In U.S. trading, USD/JPY was down 0.01% and trading at 102.23, up from a session low of 102.10 and off a high of 102.49.

The pair was expected to test support at 102.02, Friday's low, and resistance at 102.64, Monday's high.

In the U.S., strong consumer confidence data bolstered the dollar, though hit-or-miss housing indicators allowed for choppy trading against the yen at times.

The Conference Board reported that its consumer confidence index rose to 82.3 this month, the highest since January 2008, from 78.3 in February. Analysts had expected the index to tick up to 78.6.

The report showed that consumers expect the economy to continue improving and believe it may gather momentum in the coming months.

Separately, the Commerce Department reported that new home sales fell by the most in five months in February, indicating headwinds still face the housing sector.

Sales of new homes fell by 3.3% in February to 440,000 units, the weakest level since last September. Still, analysts were calling for a decline of 4.9%.

January's sales were revised down to a 455,000-unit pace from the previously reported 468,000-unit rate.

Also on Tuesday, a report on U.S. housing showed that prices rose slightly less than expected in January.

The Standard & Poor’s/Case-Shiller home price index rose 13.2% in January from a year earlier, compared to forecasts for a 13.3% gain.

The yen, meanwhile, was up against the euro and down against the pound, with EUR/JPY down 0.13% at 141.32, and GBP/JPY trading up 0.18% at 168.98.

On Wednesday, the U.S. is to release data on durable goods orders, a leading indicator of production.

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