By Fast Brokers – The USD/JPY is giving back some intraday gains as the currency pair tries to regain its footing following last week’s hefty pullback. Investors rushed towards the yen in reaction to a wave of negative U.S. data. The yen has flexed its muscles as a safe haven once again as the USD/JPY sinks towards 2009 lows. Meanwhile, investors are awaiting more budget plans from Japan’s government regarding how to reign in the nation’s huge budget deficit. Meanwhile, if the USD/JPY continues to decline then it wouldn’t be surprising to see the BoJ step in with some form of verbal intervention to prevent the yen from rising too fast, particularly if the currency pair tests 2009 lows. Speaking of which, the BoJ will be releasing its monetary policy meeting minutes tomorrow and it will be interesting to see how the central bank addresses recent strength in the yen. Investors will also be digesting U.S. building permits data and more signals of a slowdown in U.S. housing could weigh on the USD/JPY.
Technically speaking, the USD/JPY has technical supports in the form of intraday and 11/30/09 lows. Additionally, the psychological 85 level could serve as a solid cushion should it be tested. As for the topside, the USD/JPY faces technical barriers in the form of intraday highs.
Present Price: 86.70
Resistances: 86.82, 86.98, 87.11, 87.23, 87.36, 87.49
Supports: 86.58, 86.46, 86.26, 86.12, 86.01, 85.87
Psychological: 85, 90, November 2009 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.
