Investing.com - The dollar firmed against the yen on Tuesday after widely-watched U.S. housing and consumer-confidence indicators beat expectations.
In U.S. trading, USD/JPY was up 0.20% and trading at 102.13, up from a session low of 101.82 and off a high of 102.17.
The pair was expected to test support at 101.74, Thursday''s low, and resistance at 102.20, Friday''s high.
The housing sector, which threw the U.S. into the worst downturn since the Great Depression and dragged on recovery for years, continues to show signs of recovery even if in fits and starts.
New home sales rose to a six-year high, surging 18.6% in May to an annual rate of 504,000, according to the U.S. Census Bureau. May''s figure was the highest level since May 2008 and the largest monthly increase since January 1992.
Analysts were expecting new home sales to rise 1.6% to 440,000 units.
The dollar also saw demand after the Conference Board reported that its index of consumer confidence jumped to 85.2 in June from 82.0 last month. It was the highest reading since January 2008.
Analysts were expecting a reading of 83.5.
The numbers kept market expectations firm for the Federal Reserve to continue winding down its monthly bond-buying program this year and begin hiking interest rates likely starting in 2015.
Fed stimulus programs such as monthly bond purchases weaken the dollar by suppressing long-term interest rates, which sends investors to assets like stocks in hopes lower borrowing costs will spur investment and hiring.
The yen, meanwhile, was down against the euro and up against the pound, with EUR/JPY up 0.10% at 138.80, and GBP/JPY trading down 0.15% at 173.31.
On Wednesday, the U.S. is to publish data on durable goods orders as well as revised data on first-quarter growth.
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