USD/JPY retraces daily gains, back to 106.00

USD/JPY has pulled back from fresh 4-week highs and turned negative for the day during the New York session as the dollar lost momentum.

USD/JPY failed to sustain gains and retreated from a high of 106.52 and slid back below the 106 mark to score a session low of 105.94 in recent dealings. The pair was last trading at 106.02, now 0.10% below its opening price.

At the beginning of the session, the greenback benefited from supportive housing data. US housing starts rose 4.8% to a seasonally adjusted annual rate of 1.189 million in June, while building permits rose 1.5% to 1.153 million, both readings above expectations.

USD/JPY technical levels

In terms of technical levels, a decisive break above 106.52 would pave the way to 106.80 (Jun 24 high) and 107.89 (Jun 7 high) ahead of 108.45 (100-day SMA). On the flip side, supports are seen at 105.64 (Jul 19 low), 105.26 (Jul 18 low) and 103.90 (Jul 13 low).