USD/JPY trims losses, near 107.20 on US data

The pair regains the 107.00 handle and above.
Support emerged in the vicinity of the 106.80 region.
US Housing Starts, Building Permits surprised to the upside.

Pablo Piovano FXStreet

The greenback is now regaining some traction vs. its Japanese counterpart on Tuesday, lifting USD/JPY back above the 107.00 barrier.

USD/JPY bid on data, looks to Fedspeak

The pair is looking to find some footing around the end of the weekly range after testing lows in the 106.80 region earlier in the session.

The greenback is alternating gains with losses today after both Housing Starts and Building Permits came in on the strong side during last month, at 1.319 million units and 1.354 million units, respectively, both prints bettering initial expectations.

In the meantime, the buck has managed to retake the 107.00 milestone and recover ground lost following Monday’s moderate sell off after Trump’s comments on Russia and China playing the ‘devaluation game’.

Further data in the US saw Industrial Production expanding at a healthy 0.5% inter-month in March and Manufacturing Production rising 0.1% MoM.

Later in the NA session, San Francisco Fed John Williams (voter, centrist), R.Quarles, Philadelphia Fed P.Harker (non voter, hawkish) and Chicago Fed C.Evans (2019 voter, dovish) area all due to speak.

USD/JPY levels to consider

As of writing the pair is up 0.02% at 107.14 and a break above 107.78 (high Apr.13) would aim for 107.92 (high Feb.21) and then 110.48 (high Feb.2). On the downside, the immediate support lines up at 106.88 (low Apr.17) followed by 106.61 (low Apr.9) and finally 106.49 (21-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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