By Fast Brokers
The USD/JPY topped out yesterday and is reencountering the key 100 level as we anticipated. 100 is such a critical psychological hurdle that it’s no surprise the currency pair is hesitating to leave it behind. The BOJ kept its benchmark rate at 0.1% today with little to no wiggle room monetarily. However, the BOJ announced the initiation of new, vague quantitative easing tactics to try and liquefy the Yen. The announcement is having an inconsequential impact on the USD/JPY and its path is still highly reliant on the performance of the two economies. The USD/JPY is sticking above 100 and March highs for now, a positive sign for the uptrend. However, if U.S. equities should crumble under the pressure of financials, then the USD/JPY should reluctantly exercise its positive correlation with the S&P futures and follow suit. That being said, the fresh near-term uptrend remains intact for now as the trends approach a face-off. Though the U.S. won’t release any significant data, Japan will announce its Current Account late Tuesday and the BOJ Monthly Report Wednesday morning, giving investors a bird’s eye view of the economic data guiding the decisions of the BOJ. Fundamentally, we find resistances of 100.71, 101.44, 101.98, 102.50, and 103.10. To the downside, we see supports of 100.28, 99.79, 99.06, 98.16, and 97.59. The USD/JPY is currently exchanging at 100.33.
Market Commentary provided by Fast Brokers.
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