By Fast Brokers – The USD/JPY is back on the rise as the Dollar appreciates across the board in reaction to a stronger than expected ADP Non-Farm Employment Change figure. The outperformance of recent U.S. economic data has led investors towards the Dollar amidst economic uncertainties taking root across the globe. The USD/JPY is benefitting in particularly since Japan’s recent economic data has left something to be desired. Additionally, recalls at Toyota combined with the BoJ’s vocal determination to fight deflation has resulted inventors snapping up the Dollar against the Yen in light of economic improvements in the U.S. Investors are currently awaiting U.S. Services PMI data due shortly. Considering our analysis above, a positive Services PMI number could send the USD/JPY beyond previous February highs. Meanwhile, both the BoE and ECB will make monetary policy decision tomorrow and the U.S. will release weekly Unemployment Claims data. Hence, volatility could remain at a heightened level across the FX market, the USD/JPY included.
Technically speaking, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday and previous February lows. As for the topside, the USD/JPY faces multiple downtrend lines along with 2/1 and 1/19 highs. Meanwhile, the USD/JPY is fighting to create some topside separation between price and the psychological 90 level.
Present Price: 90.80
Resistances: 90.90, 91.07, 91.07, 91.24, 91.36, 91.47, 91.64
Supports: 90.69, 90.58, 90.46, 90.28, 90.12, 89.97
Psychological: 90, January highs and lows
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