Yen Gains Strength from Weak US Data

The Yen was able to exert serious pressure on the dollar throughout today triggered by rumors of a large-scale repatriation by Japanese exporters. In addition, the posting of a steep drop in US pending home sales earlier this morning weighed heavily on the greenback.

As a result, the USDYEN plunged to lows of 91.25 before fighting back to its current 91.70. The weaker pending home sales sparked fears that, perhaps, the US housing market has still not stabilized.

However, technical considerations seem to have caused the EURUSD to fall steeply to its present value of 1.4360. There was a consensus of expert opinion stating that the pair needed to achieve a positive break of the 1.4450 level in order to sustain its bullish run.