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Forex: USD/JPY prints new high at 95.75 on US session

FXstreet.com (Barcelona) - After the rally in reaction to the BoJ aggressive decision, the USD/JPY became quite stable around 95.50 throughout the European session. Now, as the US session unfolds, the pair has printed a new high at 95.75 and extended the daily range to 300 pips.

The US initial jobless claims rose from 357K to 385K, instead of easing to 350K. Continuing claims also disappointed the market by coming in at 3.063M instead of the 3.050K consensus, with the previous figure being revised higher from 3.050K to 3.071K. The March Challenger Job Cuts report eased from 55.356K to 49.255K, but still higher than December and January data, at 32.6K and 40.K, respectively.

In regard to the BoJ aggressive action in order to target 2% inflation, BTMU analyst Derek Halpenny said that with the BOJ now buying out to 40 years there is a high risk that the financial markets will start to conclude that the BOJ is moving toward debt monetization. Kit Juckes, Global Head of Currency Strategy at Societe Generale, is surprised with what looks like a 100% increase in bond boosting, instead of the expected 50%. “This is the kind of aggressive easing we are used to seeing from the Fed and would just love to see more of from the ECB...”, he continued, but not sure if the BoJ will manage to deliver the 2% inflation on 2 year time scale.

“Fresh extension higher will be looking for test of 96.00 and key barrier at 96.70, 12 Mar peak and highest level seen since Aug 2009”, wrote Windsor Brokers analyst Slobodan Drvenica, suggesting a corrective pullback preceding fresh rally based on overextended hourly studies, with any stronger dips to be ideally contained above 94.50/40, Fib 38.2% of overnight’s rally and previous highs of 28/29 Mar, to keep immediate bulls intact.

American equity markets experience soft opening Thursday

The US stock market experienced a soft opening Thursday, in a day dominated thus far by central banking activities across Japan and Europe. Moving tothe United States, Initial Jobless Claims (March 31) came in at 385K, which exceeded expectations of just 350K. Moreover, Continuing Jobless Claims (March 24) were reported at 3.063M, against estimates of only 3.05M.
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Forex Flash: USD/CAD sell on rallies – TD Securities

With no domestic data on tap and plenty of Fed-speak today ahead of tomorrow’s data deluge, TD Securities analysts favor neutral range-trading in USD/CAD in the near-term. “From a technical point of view, we have been bearish USD/CAD over the past week or two but price trends suggest that the recent improvement may be stalling”; wrote analysts Shaun Osborne and Greg Moore, looking to sell USD rallies at the moment though “and we still rather think that the 1.0180/85 area should be firm short-term resistance”.
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