By Fast Brokers – The USD/JPY is retesting its highly psychological 90 level as the Dollar pulls back across the board ahead of the FOMC. Investors will be paying close attention to the Fed’s statement to see whether the central bank alters its dovish language. Should there be any alteration, this could spur a Dollar rally and benefit the USD/JPY. However, if the Fed keeps its loose policy statement intact, the risk trade could bounce in anticipation of more cheap money in the U.S. The U.S. will also release building permits data today, meaning that either way the FX markets could be in for an active trading session. The BoJ will also make its monetary policy decision during tomorrow’s Asia trading session. It will be interesting to see whether the BoJ heeds to the DPJ’s calls for additionally liquidity injections to counter deflationary pressures. If so, the USD/JPY could pop again as the BoJ takes a looser monetary policy stance than the Fed. However, if the BoJ keeps its policy as is the USD/JPY may be buoyed around its highly psychological 90 area. That being said, there are many events on the calendar which could have a considerable impact on the USD/JPY over the next 24 hours.
Technically speaking, the USD/JPY faces multiple downtrend lines along with 3.8, 3/10, and 3/12 highs. Meanwhile, the highly psychological 90 area could continue to have an influence over the USD/JPY’s movements for the near-term. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with 3/9 lows.
Present Price: 90.06
Resistances: 90.16, 90.23, 90.29, 90.35, 90.41, 90.50
Supports: 90.01, 89.92, 89.84, 89.74, 89.64, 89.55
Psychological: 90, March highs and 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 regardedneither 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.
