Forex: USD/JPY pressured, approaching daily low

FXstreet.com (Barcelona) - The USD/JPY corrective movement from the 99.94 high printed on Thursday extended to as low as 97.56 during the Asian morning and regained the 98.00 ground as the European trading started. However, as the European morning ended, the market became heavier and forced a move below the 98.00 handle. At the moment of writing, the pair is down at 97.66, heading towards the daily low.

Ahead, NY empire state manufacturing index, TIC flows and NAHB housing market index will be priced in. “The Empire manufacturing index provides the first glimpse of April manufacturing surveys. Markets are looking for a 2pt deterioration to 7.0, with TD slightly more pessimistic at 3.0”, wrote TD Securities analyst Annette Beacher.

Japan February industrial production was down from -5.8% to -10.5% and capacity utilization fell from 1.7% to 0.7%. However, the monthly change in industrial production came in higher than expected, at 0.6% instead of -0.1%.

“The break through 98.70 signals that the test of 100.00 sentiment area has failed and the pair entered a consolidation pattern towards 96.60-95.70. The outlook here is negative for 97.20, en route to 95.70 and every rebound should be limited below 98.70 resistance area”, wrote Deltastock.com analyst Stoyan Mihaylov.