By Fast Brokers – The USD/JPY is moving sideways despite volatility taking place in the Euro and Pound after the EU announced an aid offer for Greece to settle credit markets. While once may expect the USD/JPY to benefit from such a development due to its positive correlation with the risk trade, investors are instead opting to keep the currency pair locked beneath its April highs. However, its new uptrend is still intact and we will have to see how the remainder of the trading session plays out. A possible element weighing on the USD/JPY could be speculation that China will appreciate the Yuan soon, which would likely benefit the Yen. Additionally, the BoJ may provide an upward revision for its economic performance outlook, also a Yen positive. Meanwhile, the data wire is relatively quiet until tomorrow’s U.S. Trade Balance data. Investors will be looking to see if U.S. imports increased. Strong U.S. imports implies an increase in demand for Japanese exports, a USD/JPY positive.
Technically speaking, the USD/JPY faces technical barriers in the form of previous April highs and the currency pair’s psychological 95 level. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday, 3/30, and 3/25 lows. Additionally, the psychological 93 level could serve as a psychological cushion for the near-term.
Present Price: 93.28
Resistances: 93.35, 93.45, 93.57, 93.71, 93.86, 94.06, 94.26
Supports: 93.14, 93.04, 92.84, 92.70, 92.59, 92.40, 92.26
Psychological: .94, .93, 2010 highs
(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 regarded neither 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.
