By Fast Brokers – The USD/JPY is fighting to stabilize around its highly psychological 90 level after the currency pair took a large step down on sizable volume. The Dollar strengthened across the board after Unemployment Claims jumped back towards 500k and investors reacted negatively to Obama’s proposal to reduce the size and influence of banks. However, the psychological 90 level could prove to be a solid support as investors await next Tuesday’s BoJ monetary policy meeting. We would not be surprised to see the BoJ reiterate its commitment to a loose monetary policy as long as deflation is a concern, especially considering yesterday’s setback in the USD/JPY. In addition to the BoJ’s meeting the Fed will also make a monetary policy decision later in the week along with a slew of key economic data from around the globe. Japan will join the data wire with its Trade Balance, Retail Sales, CPI, Household Spending, and Industrial Production numbers peppered throughout the week. Hence, FX markets could remain very active next week as investors digest the wealth of data and news. Australia will kick off with PPI during Monday’s Asia trading session followed by U.S. Existing Home Sales.
Technically speaking, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday, 12/16, and 12/18 lows. Furthermore, the highly psychological 90 level could continue to serve as a solid support over the near-term. As for the topside, the USD/JPY faces multiple downtrend lines along with intraday and 12/18 highs.
Present Price: 90.14
Resistances: 90.33, 90.49, 90.68, 90.91, 91.19, 91.44
Supports: 89.90, 89.65, 89.40, 89.21, 88.85, 88.62
Psychological: 90, December highs and lows
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
