By Fast Brokers – The USD/JPY is creeping lower today as the Yen appreciates across the board. We’re witnessing a bit of risk-averse activity going on around the marketplace as the risk trades pullback and gold weakens below $1150/oz. Alcoa’s earning’s missed analyst estimates, worrying investors that this earnings season may not be as strong as anticipated. Additionally, some analysts and investors have vocalized their concern that the EU’s relief package is not sufficient to keep Greece from tail-spinning into more troubling fiscal conditions. Pimco’s El-Erian highlighted this group by saying Pimco is not interesting in purchasing Greek bonds at the moment, denting investor confidence gained by the EU accord. This combination of events has benefitted the Yen as a safe haven, placing downward pressure on the USD/JPY in the process. Meanwhile, the U.S. Trade Balance revealed a stronger than expected pickup in import demand, a positive sign for tomorrow’s Retail Sales data. Such a development is a positive for Japan’s export-reliant economy, and it will be interesting to see how the USD/JPY responds to tomorrow’s data flows. The U.S. will also release CPI data, meaning tomorrow’s trading session could bring higher volatility. Japan will be quiet on the data wire tomorrow, leaving the U.S. in the spotlight unless Shirakawa provides investors with any unknown news regarding the BoJ’s monetary policy.
Technically speaking, the USD/JPY faces technical barriers in the form of intraday, 4/9, and 4/7 highs. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday, 3/30, and 3/25 lows. Additionally, the psychological 93 level could continue to serve as a psychological cushion for the near-term.
Present Price: 92.91
Resistances: 93.04, 93.14, 93.35, 93.45, 93.54, 93.71, 93.86
Supports: 92.84, 92.70, 92.59, 92.40, 92.26, 92.15, 91.93
Psychological: .94, .93, 2010 highs
(click chart to enlarge)
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