COZfx: Japan on track to meet 2% price-stability target

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COZforex: The dollar remained lower against the yen on Tuesday after data showed that US building permits rise at the fastest pace in 5 years in October, bolstering the outlook for the US recovery.

During European afternoon trade, USD/JPY was down 0.20% to 101.47, holding below the six-month high of 101.91 struck on Monday. COZFX strategist Nigel Boynton said, USD/JPY is predicted to find support at 101.23, and a drop through could take it to the next support line of 100.98. Meanwhile, the pair is predicted to find its first resistance at 101.83, and a rise through could take it to the next resistance line of 102.18.

Early morning, the minutes from the Bank of Japan’s October 31-monetary policy meeting were released. According to the minutes, the board member felt that the Japanese economy is recovering moderately, with private consumption and external demand expected to pick up on the back of improvement in few major developed economies, particularly the US and Europe. The minutes assessed that the 2% price stability target was likely to be achieved “toward the latter half of the projection period.”

The US Commerce Department said that the number of building permits issued in October rise 6.2% to a seasonally adjusted 1.034 million from September’s total of 0.970 million. Analysts expected building permits to drop to 0.940 million units in October.

The US dollar index, which tracks the performance of the greenback versus a basket of 6 other major currencies, was down 0.18% to 80.81.

(COZ forex UK)