News & Data:
The US Dollar strengthened further after a series of solid US econ data yesterday. Durable Goods Orders, New Home Sales and Consumer Confidence data all arrived higher than expected, which kept the Greenback bid and sent the S&P 500 lower. The largest flows were seen in USD/JPY, which took out two key resistance levels with much effort. No significant resistance now seen until 124. It is also notable that positioning data shows that speculators are not nearly as long USD/JPY as they have been last year, which should make it easier for the pair to rally even further. It seems that 121-125 could be the new range for USD/JPY in the near future.
The overnight session was rather quiet, with no major data releases. The Bank of Japan released their meeting minutes, but they did not contain anything surprising. Some Japanese officials said that they are paying close attention to FX rates, but no one commented on any specific levels.
Looking ahead, the econ calendar is rather light with the Bank of Canada rate decision at 15:00 BST the only notable event.
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