The numder of US initial jobless claims increased slightly, but less-than-expectated. In the week ending March 14, the advanced number for seasonally adjusted initial claims was 291,000, incresed by 1,000 compared to the previous week's revised level. Philly Fed manufacturing index increased at a moderate pace in March. The survey's current indicator for general activity and new orders were positive and remained near their low readings in February. The survey's broadest measure of manufacturing conditions, (the diffusion index of current activity at 5.0), was virtually unchanged from its reading of 5.2 in February.
USD/CAD
The pair covered most of its Wednesday losses at the yesterday's session. USD recharged again. We recommended buying with SL at 1.2448 on a closing basis with targets at 1.2595, 1.2650, and 1.2720. The pair made a high at 1.2758. Today, traders eye on Canada economic data. CAD is trading higher against USD at the Asian session. Canada macro calendar offered a data-heavy day. Core CPI, CPI, core retail sales and retail sales data is due to release. The pair prepared a strong support base between 1.2350 and 1.2300 200MSMA. Until prices close above 1.2300, buying on dips still remains in play. We recommend selling below 1.2660 with targets at 1.2640 and 1.2600. In case the price closes below 1.2600, the near term noise will ignite. In this case, the pair can correct towards 1.2470. We recommend buying above 1.2700 with targets at 1.2730, 1.2750, and 1.2800. Strong upswing can be expected only above 1.2760.
The key level to breach is at 1.2760 to print a fresh new high.
USD/JPY
The BoJ monetary policy meeting minutes was released at 8.50am. The minuets highlighted that economic and financial developments in Japan has been picking up. Exports were expected to increase moderately, mainly against the background of the recovery in overseas economies. Members shared the view that the outlook for crude oil prices was highly uncertain. Depending on developments in these prices, the timing for reaching 2 percent could extend either earlier or later.
After the minutes, the yen is trading lower against USD, EUR, and GBP. Intraday support is likely to be fiund at 120.60 and resistance is seen at 121.10. We recommend buying above with targets at 121.50,121.70, and 122.00. Parallel support is at 119.00 50DSMA. We recommend buying with SL at 118.90. This view is valid up to this weekend.
To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com
