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23 Apr 2013
Forex: USD/JPY looks to extend corrective movement below 98.59
FXstreet.com (Barcelona) - The USD/JPY came to retest the daily lows on the European opening, extending lower by 2 pips to 98.57. The pair is once again taking profits from having rallied towards but failing just below the 100.00 mark. The first time capped at 99.94 high as investors cheered the surprising BoJ policy decision and the second time was capped at 99.89 high in reaction to G20/IMF approval of such policy.
The market will now be eyeing developments in the Euro area as the preliminary release of April PMI by Markit is released. Consensus points to no change in both manufacturing and services figures in the Eurozone.
“Intraday dips lower should find support now at 97.50 and be contained by 96.45. Failure here would imply a retest of trend and cloud support at 94.31/44”, wrote Commerzbank analyst Karen Jones, targeting 101.27/67 (the 1999 and 2005 lows).
The market will now be eyeing developments in the Euro area as the preliminary release of April PMI by Markit is released. Consensus points to no change in both manufacturing and services figures in the Eurozone.
“Intraday dips lower should find support now at 97.50 and be contained by 96.45. Failure here would imply a retest of trend and cloud support at 94.31/44”, wrote Commerzbank analyst Karen Jones, targeting 101.27/67 (the 1999 and 2005 lows).