The USDJPY resumed its rise versus the Japanese yen for a fourth straight session to trade near two-month high after optimistic U.S. housing report eased concerns the U.S. economic recovery is losing steam.
Data released on Tuesday showed that U.S. hosing stars climbed to the highest level in almost 7-1/2 years in April and building permits rose.
The buoyant housing report provided some confidence regarding the health of the economy in the second quarter, after the release of downbeat retail sales and consumer sentiment last week.
Later in the day, investors will focus on FOMC minutes for April’s policy meeting to track any signals of the Fed’s rate hike.
The yen was little changed after a report showing Japan’s economy grew at the fastest pace in a year in the first quarter, recording an expansion of 2.4 percent.
Following the breach of Daily SMA 20 and SMA 50, the USDJPY climbed to hit a high of 121.08 while it is currently trading around 120.98.
The breakout of the resistance line depicted on the chart, the pair received an additional momentum.
The pair faced resistance at 121, where the coming resistance is located at 121.30 then 122.20.
The USDJPY has remained to trade within a narrow range since March, where the breach of the previously mentioned resistance line may provoke more bullishness.