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.