Forex: USD/JPY falls back to the 96.00 support

FXstreet.com (Barcelona) - The market has been already testing the 96.00 mark since earlier in the day, while being limited at 96.25 area on the upside. The publication of US Consumer Price Index in February triggered a move back to the psychological level, keeping the price below the flat level of 96.11.

The February CPI data in the US rose by 0.7% instead of the expected 0.5%. The annualized figure improved from 1.6% to 2.0%, also beating the 1.5% consensus. Excluding food and energy data came in as expected, at 0.2% (MoM) and from 1.9% to 2.0% (YoY).

Disappointing market consensus, the NY Empire State Building Manufacturing Index dropped from 10.04 to 9.24 in March, below the expected 10.0. Ahead are US TIC net flows, industrial production and Reuters/Michigan consumer sentiment index.

“My outlook here is negative and I expect a break through 95.87 to initiate a sell-off towards 95.07”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to initial intraday resistance at 96.30.