By Fast Brokers – The USD/JPY is bouncing between our 1st and 2nd tier uptrend lines as investors digest the latest wave of U.S. econ data. Today’s U.S. data printed negatively mixed once again, with TIC Long-Term Purchases proving to be the only winner. Meanwhile, investors shouldn’t forget that Japan’s Prelim GDP topped expectations by 5 basis points to kick off the week. Therefore, one may expect investors to send the USD/JPY lower due to a more favorable outlook for the Yen as compared to the Dollar. However, the USD/JPY is proving to be resilient above our 1st tier uptrend line since the currency pair is drifting closer to a retracement towards October lows. Meanwhile, it seems are paying closer attention to the S&P’s ongoing interaction with its highly psychological 1100 level. The USD/JPY’s correlative behavior has been erratic lately, making this major Dollar cross a tougher read these days. Regardless, there is still a long-term downtrend at play and our technical cushions are wearing thin.
Technically speaking, the USD/JPY is presently fighting to stay above our 1st and 2nd tier uptrend lines. Should our 1st tier give way, the currency pair still has 10/2 lows along with October lows serving as technical cushions. As for the topside, the USD/JPY faces multiple downtrend lines along with the highly psychological 90 level. Therefore, quite a few topside challenges are in place. Meanwhile, the U.S. will release CPI and Building Permits data on Wednesday, meaning overall activity in the FX market could pick up.
Present Price: 89.23
Resistances: 89.31, 89.41, 89.54, 89.68, 89.83, 89.89, 90.07
Supports: 89.15, 88.99, 88.85, 88.73, 88.58, 88.44
Psychological: 90, November and October Lows
Market Commentary provided by Fast Brokers.
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