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18 Apr 2013
Forex: USD/JPY fall held by 98.00 handle
FXstreet.com (Barcelona) - The USD/JPY erased all its gains made during the European morning up to 98.53 high as the market couldn’t find its way above 98.50 resistance. Then, option activity strengthened the Yen back to the 98.00 ground and the publication of disappointing US manufacturing data sent the pair to 97.92 low. Support at the 98.00 handle is working in favoring of an ongoing bouncing movement.
In April, the manufacturing survey by Philadelphia Fed dropped from 2.0 to 1.3 instead of rising to 3.3, as expected by consensus. New orders fell from -0.5 to -1.0 and employment tumbled from -2.7 to -6.8. Following a 0.5% rise in February, the CB Leading Indicator contracted by -0.1% in March. Market consensus was suggesting an improvement of 0.1%.
US initial jobless claims came 2K higher than expected, at 352K in the April-13 week, and the prior week’s figure was revised higher by 2K, to 348K. Continuing claims fell from 3.108M to 3.068M, below the 3.075M consensus. And the prior week’s data was revised higher from 3.079M to 3.103M.
“The USD/JPY currency pair continues forming an ascending structure; it may be completed at the level of 98.90. We think, today the price may start falling down towards an ascending channel”, wrote Roboforex.com analyst Igor Sayadov, expecting then to break the channel and continue moving downwards to reach a predicted target at 93.70.
In April, the manufacturing survey by Philadelphia Fed dropped from 2.0 to 1.3 instead of rising to 3.3, as expected by consensus. New orders fell from -0.5 to -1.0 and employment tumbled from -2.7 to -6.8. Following a 0.5% rise in February, the CB Leading Indicator contracted by -0.1% in March. Market consensus was suggesting an improvement of 0.1%.
US initial jobless claims came 2K higher than expected, at 352K in the April-13 week, and the prior week’s figure was revised higher by 2K, to 348K. Continuing claims fell from 3.108M to 3.068M, below the 3.075M consensus. And the prior week’s data was revised higher from 3.079M to 3.103M.
“The USD/JPY currency pair continues forming an ascending structure; it may be completed at the level of 98.90. We think, today the price may start falling down towards an ascending channel”, wrote Roboforex.com analyst Igor Sayadov, expecting then to break the channel and continue moving downwards to reach a predicted target at 93.70.