By Fast Brokers – The USD/JPY is holding steady around its psychological 93 level, falling into another one of its tight range bound periods. News wires have cooled a bit today and the data wire is relatively quiet. This gives the USD/JPY room to breathe as it debates between trends. While the uptrend is clearly in place, there remain downtrend forces stemming from long-term patterns. Hence, it will be interesting to see which way the USD/JPY breaks next. The currency pair seems tied to the risk trade right now barring any surprise moves from the BoJ. That being said, investors should keep a close eye on the dollar’s reaction to upcoming economic data releases along with surprise psychological events. The EU, UK, and U.S. will all be active tomorrow, highlighted by UK retail sales and U.S. existing home sales. Japan will print its trade balance data during tomorrow’s Asia trading session as well. Investors are expecting Japan’s trade surplus to rise to 0.66 trillion yen. Considering the BoJ has expressed enthusiasm in Japan’s manufacturing sector, it wouldn’t be surprising to see a sizable surplus fueled by demand from China.
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: 93.27
Resistances: 93.38, 93.51, 93.64, 93.75, 93.94, 94.06
Supports: 93.13, 93.03, 92.91, 92.81, 92.71, 92.57
Psychological: .92, .93, April highs and lows
(click chart to enlarge)
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