USD/JPY runs into Japanese support at the 117.75/80 area after the dollar slide following the weakness in US new home sales. USD/JPY fell from 118.30 just before the release, filling in bids between 118.20 and 118.00. Light intra-day stops were also filled, yet the dollar has struggled to overcome the decent Japanese bids.
More interest is tipped towards the mid 117's and should negate some of the bullish sentiment. The fall in new home sales increases the risk of a housing market led recession. This could spillover to the equity market and increase pressure on carry trades.
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