By Fast Brokers – The USD/JPY continues to hit a brick wall at our 3rd tier downtrend line, revealing the significance of the obstacle. Investors were ambivalent about a better than expected Final GDP from Japan, and the USD/JPY is creeping back into its downtrend as U.S. equities rise. Hence, we are witnessing the theme of a broad based depreciation of the Dollar once again. Though movement in the USD/JPY is less extreme, its recent tendency to have a negative correlation with the GBP/USD and EUR/USD says wonders. Hypothetically, the USD/JPY should be rising with equities due to the global economic recovery taking place. However, the USD/JPY’s tendency to head south with rising equities shows us there is rampant concern surrounding the greenback. Furthermore, the longer the Yen trades at a relatively appreciated level, the longer Japanese exporters and manufacturers will struggle. We could see the USD/JPY remain within its trading range developed over the past few months until our downtrend lines finally collide with price. By then, the USD/JPY will likely be forced to make another directional decision. As for now, the medium-term downtrend is in place and will remain so until we see a game-changing move to the upside.
Present Price: 97.85
Resistances: 97.98, 98.66, 99.49, 100.06, 100.74
Supports: 97.45, 96.90, 96.33, 95.82, 95.20
Psychological: 95, 100
Market Commentary provided by Fast Brokers.
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