USD/JPY (current price: 117.56)
Japanese All Industries Activity came in at 0.2%, in line with the consensus estimate. The Japanese Yen remains among the weakest majors as the Bank of Japan is still the most dovish central bank. The better than expected U.S. Existing Home Sales Data pushed the pair higher in late trading. Sales came in at an annualized reading of 5.61 million units, beating the consensus estimate of 5.52 million units. The crucial technical 120 level still lies ahead as strong resistance.
Our assessment: USD/JPY still trades near its recent rally high around the 118.50 level. The bullish long-term trend is still intact, despite the recent correction.
