USD/JPY extends gains after US data

USD/JPY extended gains at the beginning of the American session, reaching its highest level since the Brexit vote, as the dollar strengthened broadly.

The US dollar got a boost from better-than-expected June housing data, extending gains to its highest level since June 24 against the yen. The pair peaked at 106.52 but found resistances and it was last trading at 106.45, still up 0.3% on the day.

On the data front, 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 levels to watch

In terms of technical levels, next resistances line up at 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).