By Fast Brokers – The USD/JPY is registering only a moderate decline today as the Dollar surges against the Euro, Pound, and Aussie. Investors are rushing to the Dollar as a safe haven amid neutral monetary policy statements from European central banks combined with weak economic data around the globe. Both the BoE and ECB kept the monetary policies on hold as central banks take a wait and see approach in regards to the health of the global economic. Debt issues in Greece and tighter monetary policy in China has caused central bankers to omit hawkish comments as they monitor how these negative economic developments will impact global growth. Meanwhile, negative data from the U.S. and UK has only fueled the Dollar’s climb, causing large pullbacks in the Cable and EUR/USD. However, the USD/JPY is holding up relatively well since Japan has been quiet on the data front and the BoJ continues to state that it will fight deflationary forces. Hence, the loose monetary policy stances from the BoJ and Fed are offsetting each other, providing a bit of stability for the USD/JPY. However, today’s negative U.S. data is leading to slight declines in the currency pair. Therefore, investors should monitor tomorrow’s U.S. Unemployment Rate and Non-Farm Employment Change data tomorrow.
Technically speaking, the USD/JPY has multiple uptrend lines serving as technical cushions along with 2/3 and 2/1 lows. As for the topside, the USD/JPY faces multiple downtrend lines along with 2/1 and 2/3 highs. Meanwhile, the USD/JPY is fighting to create some topside separation between price and the psychological 90 level. That being said, the psychological 90 level could serve as a solid technical support should it be tested.
Present Price: 90.44
Resistances: 90.55, 90.70, 90.84, 90.95, 91.07, 91.21
Supports: 90.28, 90.12, 89.97, 89.76, 89.54
Psychological: 90, January highs and lows
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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