By Fast Brokers – The USD/JPY is back to one of its all too familiar consolidative patterns, hovering around its psychological 93 level despite key data releases from China and the U.S. China’s GDP and Industrial Production printed in line with expectations, a positive sign for Japan’s largest trading partner. Additionally, prices came in lower than anticipated, implying China may keep its monetary policy loose for a bit longer than anticipated, also a positive for Japan’s economy. Speaking of which, the BoJ’s Shirakawa reiterated the central bank’s analysis that Japan’s economic recovery is solidifying and a double dip seems highly unlikely. However, it remains to be see how much of an impact a Yuan appreciation would have on the Yen should China move forward with a more flexible currency regime. Regardless, the USD/JPY is back to its calm ways in anticipation of another jolt in activity. This may not come before week’s end since the data wire is relatively empty tomorrow until the U.S. releases Building Permits and Prelim Consumer Sentiment figures. Even then, these data points could have a limited impact on the FX markets unless they register a large deviation from estimates.
Technically speaking, the USD/JPY faces technical barriers in the form of intraday, 4/7, and 4/2 highs. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with 4/13, 3/30, and 3/25 lows. Additionally, the psychological 93 level could continue to serve as a psychological cushion for the near-term.
Present Price: 93.29
Resistances: 93.37, 93.47, 93.57, 93.71, 93.86, 94.04
Supports: 93.14, 93.04, 92.84, 92.70, 92.59, 92.40
Psychological: .94, .93, 2010 highs
(click chart to enlarge)
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