USD/JPY remains well offered after US housing data

The USD/JPY pair maintained its offered tone and failed to gain any respite from mixed US housing market data.

The government data, released just a short while ago, showed US building permits rose 6.3% to an annualized pace of 1.225 million in September as compared to 1.165 million expected and 1.152 pace in August. Meanwhile, housing starts fell short of expectations and dropped 9% to 18-month low in September, coming-in at 1.047 million units versus previous month's 1.15 million units. 

The data provided little incentive for the bulls and the pair consolidated near the lower end of daily trading range, around 103.40-45 band, as investors remained cautious ahead of the third and final US Presidential debate. 

Technical outlook

Mohammed Isah, Technical Strategist at FXTechstrategy, notes, "On the downside, support comes in at the 103.00 level where a break if seen will aim at the 102.50 level. A cut through here will turn focus to the 102.00 level and possibly lower towards the 101.50 level. On the upside, resistance resides at the 104.00 level. Further out, we envisage a possible move towards the 104.50 level. Further out, resistance resides at the 105.00 level with a turn above here aiming at the 105.50 level. On the whole, USDJPY looks to pullback further."