The U.S dollar strengthened against the Japanese Yen on Wednesday, after upbeat U.S. new home sales data showed signs of economic recovery in the U.S economy. Official data showed that U.S. new home sales data rose 18.0% last month to 504,000 units, beating expectations for a 4.4% gain to 430,000 units. New home sales for July were revised to 1.9% increase from a previously estimated 2.4% drop. The strong data added to expectations that the Federal Reserve will hike interest rates sooner than markets are expecting.
Intraday bias remains on the upside as 21 and 55 EMA trend indicators are crossed upward in the 1 hour, 4 hours, Daily,Weekly and Monthly charts signalling the continuation of the strong bullish trend. SSRC, Stochastic, RSI and MACD Oscillator indicators are showing bullish momentum is still intact, so am expecting further rise to 109.450 resistance in the short term picture.
An important fundamental release to watch closely tomorrow is the USD Core Durable Good Orders and Unemployment Claims.