The USD/JPY pair is seen extending its recovery from a two-week low level near 104.00 region and is now trading around 104.75 region. The pair's recovery momentum gained traction after the Conference Board Consumer Confidence Index printed better-than-expected reading for the month of July and stood at 97.3, slightly lower than 97.4 recorded in June. Meanwhile, the new home sales data also posted a healthy gain of 3.5% in June and rose to a seasonally adjusted annual rate of 592,000 units, marking its strongest reading since February 2008. The reading surpassed even the most optimistic estimates and provided the much needed respite for the USD/JPY bulls. Earlier on Tuesday, the pair got slammed as market participants got disappointed on news of much lower than anticipated stimulus package from the Japanese government. Going forward, traders would now take near-term bets following the passage of this week's key event risks, monetary policy decisions from the US Federal Reserve on Wednesday and the Bank of Japan on Friday.