Investing.com - The dollar edged lower against the yen on Monday after data on U.S. home sales numbers disappointed investors and rekindled sentiments that even though the Federal Reserve is scaling back stimulus tools, monetary authorities will taper slightly until the economy shows more improvement.
USD/JPY was down 0.07% at 105.10 during U.S. trading, up from a session low of 104.98 and off a high of 105.42.
The pair was likely to find support at 104.65, the low of December 27 and resistance at 105.42, the earlier high.
The National Association of Realtors reported earlier that its pending home sales index increased by a seasonally adjusted 0.2% in November, far shy of market expectations for a 1.0% gain. Pending home sales for October were revised to a 1.2% decline from a previously reported drop of 0.6%.
The disappointing data sent the greenback falling, wiping out gains locked in when the Federal Reserve announced it would trim USD10 billion from its USD85 billion in monthly bond-buying purchases beginning in January.
The Fed has said it may taper the program even more should data show that economic recovery is gaining steam while adding soft patches could prompt the U.S. central bank to hike up monthly bond purchases to ensure price and labor-market stability.
Still, losses were somewhat limited as the yen came under pressure on speculation that the BoJ will expand its stimulus program in the coming months in order to meet its target of 2% inflation by 2015.
Minutes of the BoJ’s November policy meeting last week showed that that not all board members were convinced that the country’s growth was on a long-term upward trend.
Investors also reacted to comments made by BoJ Governor Haruhiko Kuroda, who said that the nation’s economy hadn’t yet completely wiped out deflation.
The yen was also lower against the euro, with EUR/JPY up 0.36% at 145.08, and down against the pound, with GBP/JPY up 0.16% at 173.59.
USD/JPY was down 0.07% at 105.10 during U.S. trading, up from a session low of 104.98 and off a high of 105.42.
The pair was likely to find support at 104.65, the low of December 27 and resistance at 105.42, the earlier high.
The National Association of Realtors reported earlier that its pending home sales index increased by a seasonally adjusted 0.2% in November, far shy of market expectations for a 1.0% gain. Pending home sales for October were revised to a 1.2% decline from a previously reported drop of 0.6%.
The disappointing data sent the greenback falling, wiping out gains locked in when the Federal Reserve announced it would trim USD10 billion from its USD85 billion in monthly bond-buying purchases beginning in January.
The Fed has said it may taper the program even more should data show that economic recovery is gaining steam while adding soft patches could prompt the U.S. central bank to hike up monthly bond purchases to ensure price and labor-market stability.
Still, losses were somewhat limited as the yen came under pressure on speculation that the BoJ will expand its stimulus program in the coming months in order to meet its target of 2% inflation by 2015.
Minutes of the BoJ’s November policy meeting last week showed that that not all board members were convinced that the country’s growth was on a long-term upward trend.
Investors also reacted to comments made by BoJ Governor Haruhiko Kuroda, who said that the nation’s economy hadn’t yet completely wiped out deflation.
The yen was also lower against the euro, with EUR/JPY up 0.36% at 145.08, and down against the pound, with GBP/JPY up 0.16% at 173.59.