By Fast Brokers – The USD/JPY is rising back towards our 3rd tier downtrend line after the weaker than expected showing from Japan’s Core Machinery Orders. Though the CMO is normally volatile, today’s report was not the solid improvement in capital expenditure investors were hoping for. As a result, the Dollar is experiencing a little strength against the Yen. However, today’s rise of the USD/JPY is not eye-popping since our 3rd tier downtrend line and May highs are still intact with volume subsiding. Therefore, even though the USD/JPY has made a few hints towards an uptrend, we still haven’t witnessed a clarifying move to the upside. Meanwhile, investors are waiting upon the release of Japan’s Final GDP later today. If the GDP data is weaker than expected, we may see some more strength in the Dollar due to the outperformance of America’s economy as compared to Japan’s. We maintain our negative outlook on the USD/JPY trend-wise until we see a game-changing move to the upside.
Fundamentally, we maintain our resistances of 97.98, 98.66, 99.49, 100.06, and 100.74. To the downside, we hold our supports of 97.45, 96.90, 96.33, 95.82, and 95.20. The 100 level serves as a key psychological barrier with 95 acting as a psychological cushion. The USD/JPY is currently exchanging at 97.90.
Market Commentary provided by Fast Brokers.
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