Heavy bias continues, test of 110.50 likely, breaks below could see 110 levels.
BOJ March Tankan corporate price expectations survey showed that Japanese companies' long-term expectations weakened in March from three months ago.
Tankan report on Friday showed that business confidence among large manufacturers declined sharply from +12 in Q4 to +6 in Q1, reaching its lowest level since Q2 2013 .
expectations for three- and five-years ahead have never heightened since the survey began and are raising doubts over whether the BOJ’s stimulus measures are working.
The pair unable to hold on to gains the back of a solid non-farm payrolls report in the U.S. and a surprise positive in the ISM manufacturing in the same U.S. session.
We see formation in the Asian session. Price action below daily cloud. Momentum studies .
Minor support is seen at 111.21 (Mar 21st lows). Breaks below to see test of 110.82 and then 110.50 ( support).
On the upside resistance is seen at 112, 112.14 (5-DMA) and then 112.48 (10-DMA).
Our call (link below) has hit all targets. We see scope for further downside. Lower trailing stop to 112.20, target 110.82/110.50