Dollar trims losses against yen after U.S. housing data

NEW YORK (Forex News Now) – The dollar pared losses against the yen on Thursday, after upbeat data on the U.S. housing market heightened FX traders’ risk appetite.

In U.S. afternoon currency trading, USD/JPY traded at 86.96, down 0.1 percent on the day, after rising from a daily low of 86.34.

Data from a trade group, the National Association of Realtors, showed earlier Thursday that existing home sales climbed more than expected in June. The report disappointing data which showed that initial claims for unemployment benefits rose faster than forecast last week.

According to forex analysis, USD/JPY was likely to touch support around the low of July 16, 86.26, and encounter immediate resistance around the high of July 20, 87.57.

Also Thursday, a government report showed that the Japanese “all-industry activity” index, which covers a broad range of economic activity, rose unexpectedly in May.

Meanwhile, the yen fell versus sterling: GBP/JPY traded at 132.78, up 0.6 percent.