By Fast Brokers – The USD/JPY is continuing its fluctuation around 93 despite today’s key U.S. data set. The risk trade is rallying in wake of strong U.S. Retail Sales and weak CPI, yet the Yen is opting to appreciate against the Dollar. Weak pricing data and continuous cautionary comments from Fed members is likely leading investors to sell the USD/JPY in anticipation of loose monetary policy from the U.S. central bank for some time. Meanwhile, although the BoJ has cited notable improvements in Japan’s economy, the DPJ is still pressuring the BoJ to battle deflation and loosen in order to support exporters. Hence, the showdown between the central bank and the DPJ continues, keeping monetary policy in check. Although activity in the USD/JPY has been pretty quiet this week, things could heat up tomorrow after China prints its key data set, including GDP, CPI, Industrial Production, etc. Considering how China is Japan’s largest trading partner, Chinese economic data releases normally have the potential to impact the Yen. China’s data will be followed by important U.S. manufacturing figures along with weekly Unemployment Claims. Hence, tomorrow’s trading session could prove to be an active one.
Technically speaking, the USD/JPY faces technical barriers in the form of intraday, 4/7, and 4/2 highs. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with 4/13, 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: 93.29
Resistances: 93.37, 93.47, 93.57, 93.71, 93.86, 94.04
Supports: 93.14, 93.04, 92.84, 92.70, 92.59, 92.40
Psychological: .94, .93, 2010 highs
(click chart to enlarge)
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