By Fast Brokers – The USD/JPY is popping today, piecing together an impressive recovery from yesterday’s lows as investors pick up the Dollar across the board. During the Asia trading session news spread that the SEC was nearly split, voting 3-2 to file charges against Goldman. This eased fears that the SEC is out for blood, a positive for the Dollar and the risk trade as a whole. Additionally, the S&P futures are rallying this morning after Goldman earnings blew past analyst estimates, also a positive for the risk trade. As a result, the Yen is losing some of its luster and investors have brought the USD/JPY back to 93. However, Friday’s selloff was considerable, so investors should keep in mind that a downward momentum does remain. That being said, investors should keep an eye on the news wire for any negative psychological news, particularly anything disconcerting from the EU regarding Greece. Meanwhile, the U.S. earnings season is just getting heated up, meaning corporate earnings could have a substantial broad-based impact on the Dollar over the near-term.
Technically speaking, the USD/JPY faces technical barriers in the form multiple downtrend lines along with intraday, 4/14, and 4/7 highs. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday, 3/29, and 4/19 lows. Additionally, the psychological 92 level could continue to serve as a psychological cushion should it be tested.
Present Price: 92.98
Resistances: 93.03, 93.18, 93.38, 93.51, 93.64, 93.75
Supports: 92.81, 92.71, 92.57, 92.47, 92.37, 92.25
Psychological: .92, .93, April highs and lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
