Forex: USD/JPY takes profits ahead of BoJ this week

FXstreet.com (Barcelona) - The market wasn’t able to record stronger gains than to 94.38 high in early Asian morning, and then, profit taking made the USD/JPY react lower to 93.83/79 as investors get ready for this week’s BoJ policy meeting. Governor Kuroda is expected to engage in a different approach, more dovish.

Japan’s vehicle sales are gradually worse, easing from -12.2% to -15.6% in March. With most countries out to celebrate Easter Monday, the US will attract investors’ attention by publishing data. “The US manufacturing sector is continuing to enjoy a period of rebound as the bounce back in domestic economic growth momentum is pushing new orders and production activity close to their highest level in almost a year”, wrote TD Securities analysts”. “This positive momentum should be sustained in April and we expect the headline ISM manufacturing index to remain essentially unchanged at 54.3, in line with consensus”.

“There is a recent range between 95.00 and 93.50. A break above 95.00 favors the bullish continuation scenario. A break below the 93.50 level could test a rising trendline from November, below which a bearish correction scenario is favored”, wrote FXstreet.com analyst Fan Yang.