Forex: USD/JPY still held above 97.00

FXstreet.com (Barcelona) - The USD/JPY continues to find good support at the lower area of 97. After Tuesday and Monday’s lows at 97.02 and 97.03, today’s downside was held by 97.09 in early Asian session. After being capped by its opening price at 97.39, the pair moved down again, to 97.13. As of writing and ahead of the European opening, the market is bouncing back to the opening price.

China HSBC manufacturing PMI was moved lower, from 51.6 to 50.4 in April, instead of 50.6 as expected. Markit manufacturing PMI in European countries is due shortly, starting with Spain. Excluding Germany (consensus of a drop from 49.0 to 47.9), analysts are expecting a slight improvement, but still contractionary.

“The USD/JPY remains near term downside corrective and dips lower should find support now at 96.71 (March high), 95.67/55 (16th April low)”, wrote Commerzbank analyst Karen Jones, expecting the pair to retest and breach above 99.70/100.00.