The Dollar/Yen pushes higher as the greenback strengthens following better than expected housing figures from the US. US Building Permits printed at 1.263M compared to the expected 1.260M, and US Housing Starts printed at 1.228M compared to the expected 1.225M. Surprisingly, the pair was able to rise even though US equities dropped sharply. Such unexpected reaction is attributed to the strengthening US Dollar outweighing the effect of the drop in US stock indices. For today, the focus will remain on economic data from the US with figures for Core Durable Goods Orders and Existing Home Sales set to be released.
The pair bounced off the 112.42 support level after the US Dollar strengthened. The pair was also able to break above the 13-period moving average indicating a possible shift in the short term momentum of the pair. The next leg up will only be confirmed if prices broke above all the three major moving averages. The pair still has the 200-period moving average (purple) and the 50-period moving average (yellow) to break. The final break above the 50-period moving average at 113.11 will expose the next key resistance level at 113.65.
Support: 112.42/ 111.95
Resistance: 113.11 / 113.65