Forex: USD/JPY eases on US session

FXstreet.com (Barcelona) - Greenback strength arrived after a first test to the 94.00 psychological level during the European opening, allowing a return to the daily high of 94.45 where it keeps finding resistance. The NY opening saw the USD/JPY easing to 94.15 area. US data is out and being digested. Apart from the Durable Goods Orders headline, data came in disappointing to investors. The US Department of Treasury will soon be selling 4-week and 2-year debt.

US consumer confidence fell from 68.0 (revised from 69.6) to 59.7 in March (consensus of 68.0), while New Home Sales dropped from 0.431M (revised from 0.437M) to 0.411M (consensus of 0.422M). Richmond Fed manufacturing was also a disappointment, at 3 (from 6, consensus of 8). US S&P/Case-Shiller Home Price Indices rose from 6.8% to 8.1% in January, beating the 7.9% consensus.

Earlier, US Durable Goods Orders rose 5.7% in February, beating consensus of 3.8%. January data was revised higher from -4.9% to -3.8%. Excluding transportation, durable goods orders dropped -0.5%, disappointing expectations of +0.5%, but saw its January print being revised higher from 2.3% to 2.9%. The ex-transportation print at -0.5% was the first negative one in five months.

“Current rebound after 93.52 low is corrective in nature, thus preceding one more leg downwards, to 92.80 area”, wrote Deltastock.com analyst Stoyan MIhaylov, pointing to initial intraday resistance at 94.50, followed by the crucial area at 95.00.