USD/JPY holds on to daily gains despite USD sell-off

The USD/JPY was able to build on yesterday's gains on Tuesday and advance to mid-111s despite the recent selling pressure witnessed on the greenback. At the moment, the pair is trading at 111.53, up 0.4% on the day.

Although the US Dollar Index, which tracks against a basket of six trade-weighted peers, dropped to its lowest level since June of last year at 93.50, the USD/JPY pair preserved its bullish momentum amid a strong appetite for riskier assets. The robust gains witnessed in global equity indexes continue to hurt the demand for safe havens such as the JPY. At the opening hour of the NA session, the Dow Jones Industrial Average is already up 0.6% while the S&P 500 is gaining 0.3%.

• US Dollar falls further, in 2017 lows near 93.50

Today's data from the U.S. showed that house prices continued to rise, with the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index coming at 5.7% on a yearly basis in May. Commenting on the data, David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, argued that the constant rise in prices doesn't resemble the bubble period of 2000-2006 as the number of homes sold annually was 20% lower than that period.

The economic docket won't be offering any data that could potentially impact the price action in the remainder of the session and participants will keep a close eye on the Wall Street.

Technical outlook

With today's rise, the pair was able to surpass the 100-DMA. A daily close above that level could open the door for further gains towards 111.65 (50-DMA) and 112.75 (200-DMA). On the downside, supports could be seen at 111.40 (100-DMA), 111 (psychological level) and 110.60 (Jul. 24 low).