By Fast Brokers – The USD/JPY is limping lower after the BoJ decided to keep its monetary policy unchanged as expected. Though the central bank noted continual deflationary pressures, it also cited improvements in export demand and manufacturing. Hence, Japan’s export-oriented economy continues to benefit from the strong economic performance of the Pacific. That being said, investors have opted to nibble on the Yen today and are locking in some profits following the currency pair’s impressive run towards 95. Despite recent weakness, the USD/JPY’s uptrend is still in play as the currency pair solidifies well above its highly psychological 95 level and key downtrend lines. Meanwhile, the U.S. will be quiet on the data-front today, meaning present trends could play out until tomorrow barring any unexpected psychological developments. However, activity should pick up tomorrow with Australia kicking off the session by releasing key employment data. The BoE and ECB with follow with they own monetary policy decision accompanied by heavily-weighted fundamental data from the UK. The wealth of data and news normally creates an environment supporting volatility, so investors should keep an eye on the greenback’s reaction to tomorrow’s flow, particularly the central bank monetary policy decisions.
Technically speaking, the USD/JPY faces technical barriers in the form of previous April highs and the currency pair’s psychological 95 level. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with 4/2, 4/1, and 3/30 lows. Additionally, the psychological 93 level could serve as a psychological cushion should it be tested.
Present Price: 93.76
Resistances: 93.86, 94.06, 94.26, 94.40, 94.56, 94.74, 94.89
Supports: 93.67, 93.57, 93.45, 93.30, 93.09, 92.84
Psychological: .95, .94, .93, 2010 highs
(click chart to enlarge)
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