Forex: USD/JPY resumes profit taking from 99.94 high

FXstreet.com (Barcelona) - The USD/JPY was the star of the last week, resuming the rally seen from 92.73 on the surprising monetary policy decision by the BoJ. The USD/JPY printed fresh highs and was capped at 99.94 high on Thursday, just below the 100.00 psychological level. Since then, a corrective movement is being seen and the pair eased to 97.56 low during the Asian morning. The market eventually bounced and is trading at the 98.00 ground again, still edging lower on the day.

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%.

“We target 101.27/67 (the 1999 and 2005 lows). This is expected to hold the initial test. Should this be cleared this will see a target of 105.50 engage, this is the 61.8% retracement of the move down from the 2007 peak”, wrote Commerzbank analyst Karen Jones, pointing to 96.70 (March high) as support, “and failure here will suggest a retest of trend and cloud support at 93.79/64”.