By Fast Brokers – The USD/JPY is back below its psychological 91 level as the risk trade flounders with the Cable and Aussie each heading South. Investors are snapping up the Yen as apparent risk aversion takes hold of the markets once again. The DAX is down nearly -2% as German’s voice their concern and discontent over what is taking shape in the EU. However, the USD/JPY still does have its highly psychological 90 level waiting below and we’ll have to see how the U.S. trading session pans out. Investors are currently waiting on weekly U.S. unemployment claims and the Philly index. Japan’s prelim GDP came in at 1.2%, two basis points shy of analyst expectations. Hence, investors have been hesitant to prop up the USD/JPY. Additionally, the GDP price index printed a basis point below analyst expectations, giving Kan ample reason to reason to weigh on the BoJ to keep liquidity loose, a USD/JPY positive. Attention remains focused on the EU and investors should keep an eye on the news wire for any developments since the situation is far from stable at this point. Japan will make its monetary policy decision tomorrow and it will be interesting to see what the central bank has to say about its recent $22 billion liquidity injection.
Technically speaking, the USD/JPY faces technical barriers in the form of multiple downtrend lines along with intraday highs and the psychological 92 level. As for the downside, the USD/JPY has technical supports in the form of intraday and 5/7 lows. Furthermore, the psychological .90 level should serve as a solid technical cushion if it’s reached.
Present Price: 90.87
Resistances: 91.14, 91.23, 91.37, 91.55., 91.66, 91.85
Supports: 90.88, 90.77, 90.64, 90.55, 90.42, 90.27
Psychological: .92, .91, .90
Market Commentary provided by Fast Brokers.
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