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2 Apr 2013
Forex: USD/JPY prints 1-month lows
FXstreet.com (Barcelona) - The USD/JPY is being pressured today again and the 93.00 mark didn’t hold the downside momentum, allowing a drop for the first time in a month. The pair reached as low as 92.57, as investors position themselves ahead of the BoJ policy meeting on Thursday. The pair is printing 1-month lows at this stage, below March 05 low at 92.92, and is getting closer to March 01 low of 92.44.
Japan’s monetary base rose from 15% to 19.8% in March (YoY), beating consensus of 16.3%. Labor cash earnings in Japan eased from 0.1% (revised from 0.7%) to -0.7% in February, disappointing a market consensus at -0.1%. Ahead on the European session is the final reading of the Markit manufacturing PMI in March across the Eurozone countries, EMU unemployment rate and German CPI.
“USD/JPY is in a very key development, breaking below a key siring trendline from November when the market started to be bullish”, wrote FXstreet.com analyst Fan Yan. “At the moment a near-term bearish outlook is favored, with lows around the 90.85 support pivot first in sight. A return above 94.50 would be difficult in this bearish correction outlook, but if it does, look for more sideways instead of bearish correction”, he added.
Japan’s monetary base rose from 15% to 19.8% in March (YoY), beating consensus of 16.3%. Labor cash earnings in Japan eased from 0.1% (revised from 0.7%) to -0.7% in February, disappointing a market consensus at -0.1%. Ahead on the European session is the final reading of the Markit manufacturing PMI in March across the Eurozone countries, EMU unemployment rate and German CPI.
“USD/JPY is in a very key development, breaking below a key siring trendline from November when the market started to be bullish”, wrote FXstreet.com analyst Fan Yan. “At the moment a near-term bearish outlook is favored, with lows around the 90.85 support pivot first in sight. A return above 94.50 would be difficult in this bearish correction outlook, but if it does, look for more sideways instead of bearish correction”, he added.