Forex - USD/JPY reverses course, moves higher
Investing.com - After starting Tuesday's Asian on a downbeat
note against the Japanese yen, the U.S. dollar moved higher as
traders seemed to get past the notion that the yen has depreciated
too rapidly against the greenback and other major currencies.
In Asian trading Tuesday, USD/JPY jumped 0.12% to 90.97. The pair traded as high as 90.97 and as low as 90.41 after touching 91.25 during Monday's U.S. session. The pair was likely to find support at 88.06, Wednesday's low, and resistance at 91.25, the earlier high.
The dollar was also propped by some decent economic reports released Monday. In U.S. economic news, the Commerce Department said durable goods orders jumped 4.6% last month. Core durable goods orders increased 0.2%.
The National Association of Realtors said its index for pending home sales fell 4.3% in December from November to 101.7. That is still almost 7% higher than the December 2011 reading.
In the spot market, the yen has plunged 5.5% in the past month alone, making the worst performer among the 10 major developed market currencies. The yen has been a downward spiral against the dollar and other majors since mid-November when Shinzo Abe began campaigning for Japan's premiership on a platform of increased inflation and unlimited monetary easing.
There is a chance USD/JPY could see further upside as traders possibly stoke risk appetite further in a week chock full of earnings and economic reports in the U.S. On Tuesday in the U.S., the Conference Board is to publish a report on U.S. consumer confidence, while Case-Shiller is to release a report on U.S. house price inflation.
Later this week, the Commerce Department releases an initial reading of U.S. fourth-quarter GDP growth and the Labor Department will unveil the January jobs report on Friday. Both reports have the potential to send the yen tumbling against riskier currencies.
Elsewhere, AUD/JPY surged 0.32% to 94.94 while EUR/JPY rose 0.07% to 122.36. NZD/JPY jumped 0.37% to 76.06.
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