By Fast Brokers – The USD/JPY has strengthened towards our 1st tier downtrend line after U.S. Building Permits data showed an encouraging improvement. Investors proceeded to snap up the Dollar across the board and sent gold tumbling. Improvements in the U.S. economy have led investors to prefer the Dollar over the Yen considering recent Japanese economic data has left something to be desired. Furthermore, investors should keep in mind that both the BoJ and Finance Ministry have reiterated their preference for a weaker Yen, implying the BoJ’s monetary policy should remain loose for quite some time. Hence, more positive economic data streams from the U.S. could yield additional gains in the USD/JPY over the near-term. That being said, the U.S. will release weekly Unemployment Claims and the Philly Manufacturing Index tomorrow. Meanwhile, attention will turn to China’s economic data set being released during tomorrow’s Asia trading session. China’s economic data could increase volatility across the board considering the weight being placed on recent monetary policy action from the central bank. Therefore, volatility could remain at a heightened state over the next 24 hours.
Technically speaking, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday and 1/19 lows and the highly psychological 90 level should it be tested. As for the topside, the USD/JPY faces multiple downtrend lines along with 1/14 and 1/12 highs.
Present Price: 91.32
Resistances: 91.46, 91.63, 91.84, 92.04, 92.25, 92.46
Supports: 91.12, 90.91, 90.75, 90.54, 90.37, 90.24
Psychological: 90, January highs and lows
Market Commentary provided by Fast Brokers.
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