Forex: USD/JPY jumps to 99.19 and erases daily losses

FXstreet.com (Barcelona) - The USD/JPY printed its lowest price by the end of the European morning, at 98.48, from where it began a rebound movement to erase its daily losses. The 99.00 mark couldn’t resist to the jump seen at 14:00 GMT on pre-market before the NY opening. The pair is already trading at 99.19, yesterday’s close, after the publication of weaker US manufacturing but rising housing prices.

The flash Markit manufacturing PMI in the US fell from 54.6 to 52.0 in April, disappointing market consensus that was pointing to 54.0. Having risen 0.6% in January, the US housing price index rose once again in February, increasing the pace to 0.7%, according to the Office of Federal Reserve Housing Enterprise Oversight. Ahead comes more housing and manufacturing data: new home sales and Richmond Fed manufacturing.

“The USD/JPY currency pair is forming a descending impulse; the market broke the previous ascending channel and right now is forming a descending structure with the target at 95.80”, wrote Roboforex.com analyst Igor Sayadov, pointing to a potential drop to 97.80 today before an eventual test of 98.70,“from below and then start another descending structure towards the target at 95.80”.