USD/JPY: Licking wounds below key 120 handle - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet note that USD/JPY traded at fresh daily lows by the end of the US session.

Key Quotes:

"Worse than expected US data was behind the pair's decline, as the US housing starts slumped 11.4% in March, pulling back from a 7-year high, while a gauge of manufacturing activity by Markit and initial jobless claims came in below expectations."

"Technically, the 1 hour chart shows that the price is now hovering around its 100 and 200 SMAs, both in a 10 pip range, whilst the technical indicators head lower well into negative territory. The 38.2% retracement of its latest daily decline between 120.83 and 118.52 stands at 119.40, as is now the immediate support."

"In the 4 hours chart the price stalled below its 200 SMA and is now trading also below the 100 SMA, while the technical indicators are aiming to cross their mid-lines to the downside, still not signalling a stronger downward move. A break below the mentioned Fibonacci support however, should confirm the bearish continuation during the upcoming hours, eyeing a retest of this month low at 118.52."