Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

During yesterday’s trading session USD/JPY traded within the range of 101.32-102.11 and closed at 101.49.

At 9:18 GMT today USD/JPY was losing 0.03% for the day to trade at 101.54. The pair touched a daily low at 101.42 during early Asian trading hours.

Fundamental view

The monthly survey by Thomson Reuters and the University of Michigan may show that the preliminary reading of the US consumer confidence improved to 84.5 in May from a final reading of 84.1 in the previous month. The survey encompasses about 500 respondents throughout the country. The index is comprised by two major components, a gauge of current conditions and a gauge of expectations. The current conditions index is based on the answers to two standard questions, while the index of expectations is based on three standard questions. All five questions have an equal weight in determining the value of the overall index.

In case the gauge of consumer sentiment showed a larger improvement than projected, this would boost demand for the dollar. The official reading is due out at 13:55 GMT.

Building permits probably increased to an annualized pace of 1.015 million units last month from 0.990 million in March. Housing statistics are calculated based on issued building permits, including those of local authorities. Not all regions of the country require building permits. The statistics reflects only those in which it is required. Ongoing studies related to construction only cover the percentage of work undertaken on the basis of permits. The majority of the data for the reporting period is not available at the time of publication and therefore does not provide statistical data for actually started construction works for the observed period.

The US Department of Commerce is expected to release its official data at 12:30 GMT today. Higher-than-expected readings can be seen as signs of improving housing market conditions and will certainly provide support for the greenback.

Housing starts in the US probably rose to an annualized pace of 0.985 million units in April from 0.946 million units in the previous month, according to the median estimate of experts. As a start of construction is considered the beginning of construction works, excavation or development of the foundations of the building. The construction of houses, is considered to be initiated at the beginning of the excavation. The index started in 1992 and covers the whole territory of the country, regardless whether construction permits are needed.

Technical view

Screenshot from 2014-05-16 12:21:55

According to Binary Tribune’s daily analysis, in case USD/JPY manages to breach the first resistance level at 101.96, it will probably continue up to test 102.43. In case the second key resistance is broken, the pair will probably attempt to advance to 102.75.

If USD/JPY manages to breach the first key support at 101.17, it will probably continue to slide and test 100.85. With this second key support broken, the movement to the downside will probably continue to 100.38.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Australia state to invest A$1 bln in renewable energy transitionAustralia state to invest A$1 bln in renewable energy transition Australia's second-most populous state, Victoria, on Thursday announced plans to invest AUD 1 billion ($630 million) to speed up energy transition towards renewable power and support a shift away from natural gas for heating and cooking […]
  • Alphabet shares close little changed on Tuesday, EU regulators investigating if tech giant favors Google for JobsAlphabet shares close little changed on Tuesday, EU regulators investigating if tech giant favors Google for Jobs EU antitrust regulators are investigating whether Alphabet Incs Google unfairly favors its tool for searching job listings, European Competition Commissioner Margrethe Vestager said on Tuesday.Alphabet shares closed lower for the fifth […]
  • Spotify shares surge after deal with Warner Bros. and DCSpotify shares surge after deal with Warner Bros. and DC Shares in Spotify Technology gained 12.7% in Thursday trading. The reason for the jump is the news for exclusive Warner Bros. and DC podcasts launching on the streaming platform. For a certain period, Spotify will be the only streaming […]
  • EUR/USD edges lower following ZEW institute reportsEUR/USD edges lower following ZEW institute reports The euro edged lower against the US dollar on Tuesday, as the Zentrum für Europäische Wirtschaftsforschung (ZEW) released mixed data regarding economic sentiment and current situation in Germany and the Euro zone as a whole.EUR/USD reached […]
  • US dollar lower against the euroUS dollar lower against the euro US dollar lowered in value against the common currency on Monday, despite the support it was receiving amid FED speculation.EUR/USD rose to a session high at 1.3060 at 9:55 GMT, after which consolidation followed at 1.3050.Earlier on […]
  • Huawei aiming high: looking for Nokia acquisitionHuawei aiming high: looking for Nokia acquisition Huawei Technologies Co, the Chinese smartphone producer declared petite for buying Nokia as company aims to become world smartphone leader according to the head of its consumer business cited by Financial Times.The company recorded a quick […]