FxWirePro: USD/JPY prints fresh weekly lows, US PMIs, Durable Goods Orders loom

Chart - Courtesy Trading View 

USD/JPY was trading 0.49% lower on the day at 130.13 at around 05:20 GMT, down for the 3rd consecutive session. 

Chatters that the Fed’s emergency lending to the banks has ballooned the balance sheet, renewing fears of more Fed rate hikes keeps sentiment depressed.

On the data front, US Chicago Fed National Activity Index (CFNAI) dropped to -0.19 in February versus 0.0 expected and 0.23 prior.

Further, US Weekly Initial Jobless Claims declined to 191K for the week ended on March 18, versus 192K prior and 203K market forecasts

US New Home Sales rose 1.1% in February from 1.8% prior, versus 1.6% analysts’ estimation, whereas Kansas Fed Manufacturing Index for March rose to 3.0 from -9.0 prior and 6.0 expected.

Looking forward US Preliminary PMIs will be important to watch for fresh impulse. US Durable Goods Orders for February is also due for release later in the NY session.

Major Support Levels: 

S1: 129.75 (Lower BB)

S2: 127.81 (21-month EMA)

Major Resistance Levels: 

R1: 131.21 (5-DMA)

R2: 133.12 (21-EMA)

Technical Summary: USD/JPY trades with a bearish bias. After rejection at 200-DMA, the pair has slipped below daily cloud and has broken strong trendline support at 130.65. 

Momentum is with the bears. MACD and ADX support weakness. Volatility is high and rising. Bearish momentum likely to continue. Dip below 129 likely.