By Fast Brokers – The USD/JPY’s pop from Monday’s lows has fallen short of 12/11 highs and the currency pair is being negated by our 2nd tier downtrend line once more. Positive activity in the USD/JPY initially stemmed from positive pricing data from both the UK and U.S. An increase in prices yielded further speculation that the Fed may tighten its monetary stance a bit. However, today’s U.S. data set turned out mixed with manufacturing and production data sending a murky signal. Today’s mixed U.S. data has taken some energy out of the Dollar’s recent broad based rally and the Greenback is presently weakening across the board. However, weakness in the USD/JPY has been minimal thus far, and the currency pair remains within the confines of December highs and lows. Attention will now shift to tomorrow’s wealth of economic data along with the Fed’s monetary policy meeting. The EU will release its Flash PMI data set along with CPI while the UK prints its CCC figure. In addition to the Fed’s monetary policy decision, the U.S. will also release CPI and Building Permits. Since Japan will be sitting on the sidelines tomorrow, the USD/JPY will likely follow the path of the Dollar. Hence, investors should monitor activity in the EUR/USD and GBP/USD as investor react to the data stream.
Technically speaking, the USD/JPY is presently locked between our 2nd tier downtrend and 4th tier uptrend lines, a supportive environment for a continuation of the currency pair’s present trading range. As for the topside, the currency pair faces multiple downtrend lines along with the highly psychological 90 area, 12/11 highs, and 12/7 highs. As for the downside, the USD/JPY has built a comfort zone between present price and our uptrend lines. Additionally, the USD/JPY has 12/14, 12/8, and 12/9 lows serving as technical cushions.
Present Price: 89.47
Resistances: 89.78, 89.89, 90.01, 90.25, 90.39, 90.58
Supports: 89.35, 89.14, 88.99, 88.77, 88.60, 88.34
Psychological: 90, December Highs and Lows
Market Commentary provided by Fast Brokers.
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