Data that was mostly better than expected - including new home sales, Richmond manufacturing index and the Case Shiller index - encouraged buyers. Durable goods orders were in line with expectations but the core capex component was up a better than expected 1%.
All the majors lost ground to the greenback including the euro, yen and AUD. USD/JPY finally breached the ¥122.00 barrier and ran to a high of ¥123.33. The pair is still holding its ground in the ¥123.00 region and I feel the next key level to look out for will be around 124.26 which is where 2007 highs lie. The 122.00 level has now turned into near term support and I would be eyeing buying opportunities in that region. On the calendar today we have the Bank of Japan’s monetary policy meeting minutes.