By Fast Brokers – The USD/JPY is creeping higher today despite rampant volatility today in the FX markets. Both the EUR/USD and Cable are undergoing hefty selloffs as uncertainty in the EU unravels the risk trade and sends investors toward the Dollar for safety. Additionally, the Reserve Bank of India surprised markets by hiking its interest rates by 25 basis points, exacerbating risk-averse flows. These two developments have had a significant impact on the markets today due to the lack of data releases from around the globe. However, the USD/JPY has only benefitted slightly from the Dollar flows so far today. Comparative inactivity in the USD/JPY is a bit puzzling since the Fed’s monetary stance has become increasingly tighter as compared to the BoJ’s. Therefore, it will be interesting to see whether the USD/JPY opts to participate as the trading session wears on. A possible reason for the USD/JPY’s calm behavior could be the reluctance of investors to send the currency pair beyond the realms of its highly psychological 90 area. Although the data wire has been quiet today, data streams will pick up next week with key UK and U.S. data on top Monday, followed by Japan’s Trade Balance figure on Tuesday.
Technically speaking, the USD/JPY faces multiple downtrend lines along with intraday, 3/18, and 3/12 highs. Meanwhile, the highly psychological 90 area could continue to have an influence over the USD/JPY’s movements for the near-term. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday and 3/18 lows.
Present Price: 90.59
Resistances: 90.63, 90.69, 90.75, 90.79, 90.83, 90.93
Supports: 90.55, 90.49, 90.42, 90.34, 90.27, 90.21
Psychological: 90, March highs and lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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