By Fast Brokers – The USD/JPY is continuing its upward consolidation above the psychological 92 level as conditions in the FX markets calm down following last week’s hefty volatility. However, as we’ll mention time and again, investors shouldn’t get too complacent with the USD/JPY since the currency pair has the potential to jolt to life. It seems investors are taking a step back and surveying the landscape to determine where to take markets from here. Has all of the damage been done concerning the EU fiscal meltdown, or is there another wave approaching? Should another storm hit this could send the USD/JPY reeling again due to the Yen’s safe haven status during moments of abnormal levels of uncertainty. Meanwhile, the BoJ’s $22 billion liquidity injection should keep the USD/JPY afloat and comfortably above its highly psychological .90 area. Japan will be quiet on the data wire tomorrow, though we will receive Prelim GDP on Thursday. Focus should remain on the EU for the time being as finance ministers discuss details for the $1 trillion rescue package.
Technically speaking, the USD/JPY faces technical barriers in the form of multiple downtrend lines along with intraday, 5/14, and 5/13 highs. Additionally, the psychological .93level could serve as a solid barrier should it be tested. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday and 5/7 lows. Furthermore, the psychological .92 area could continue to serve as a solid support over the near-term.
Present Price: 92.55
Resistances: 92.66, 92.82., 92.95, 93.06, 93.29, 93.43, 93.54
Supports: 92.50, 92.39, 92.17, 92.07, 91.92, 91.80, 91.70
Psychological: .93, .92, .91, .90
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.
