2017.02.2809:54:00UTC+00Japan's Housing Starts Beat Expectations, Expand at a Faster Pace in January

Data from the Ministry of Land, Infrastructure, Transport and Tourism showed that Japan's housing starts growth accelerated unexpectedly to 12.8 percent in January from 3.9 percent in the previous month. Data beat economists' forecast for the growth to slow to 3.3 percent.

Japan's housing starts extended gains for the seventh consecutive month. Annualized housing starts climbed to 1.0 million from 923,000 a month ago. The expected level was 916,000.

Also out earlier today were Japan's construction orders and small business confidence. Construction orders received by 50 big contractors grew only 1.1 percent after rising 7.1 percent in December.

Meanwhile, data from Shoko Chukin Bank showed Japan's small business confidence weakened for the second straight month in February. The small business confidence indicator dropped to 47.7 in February from 48.3 in January and compared to a score of 48.3 in December.

USDJPY was trading at 112.35 at around 1015 GMT. Trump-led recovery in the pair falters and the major was rejected shy of 20-DMA. Technicals are biased lower, we see scope for test of 100-DMA at 111.75, bearish reversal only on break above 20-DMA at 112.96. Focus remains on US prelim GDP figures and Trump’s interview ahead of his congressional address due later on Tuesday.