By Fast Brokers
The USD/JPY has slid below our 1st tier uptrend line as 100 slowly fades into the distance. The USD/JPY will need to rebound soon if it wants to hold onto the uptrend, or the currency pair may bow to its deadly downtrend due to its complacency. A decisive move could come in the next 24 hours with Japan releasing its Trade Balance amid a sea of earnings from U.S. corporations. The long-awaited battle with 100 has surely been drawn out, and we wouldn’t be surprised to see volatility spring to life any day now. That being said, the uptrend is holding on by a thread, reflecting the fragility of the moment. The USD/JPY should ultimately succumb to its positive correlation with U.S. equities. Investors may return to the Yen as a safe haven if a second wave of the economic crisis hits the shores of America. The fundamentals of the S&P futures aren’t encouraging as far its uptrend is concerned, meaning that a return to the downtrend for the USD/JPY could be imminent. Fundamentally, we hold our resistances of 99.06, 99.79, 100.28, 100.71, and 101.44. To the downside, we maintain our supports of 98.16, 97.59, 97.11, 96.33, and 95.55. The USD/JPY is currently exchanging at 98.10.
Market Commentary provided by Fast Brokers.
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