By Fast Brokers – The USD/JPY is creeping back above its psychological 93 level as the currency pair stares down 5/10 highs. Relative stability in the Euro has allowed investors to send equities higher and dip back into risk, a positive development for the USD/JPY. However, extensive headwinds remain as the EUR/USD and Cable struggle to find their footing. Hence, if another negative psychological event were to rock the markets this could knock the USD/JPY lower. On the other hand, should risk appetite improve this could wake the currency pair from its consolidation and send it back towards its 94-95 range. Investors should still keep in mind that the USD/JPY is digesting last week’s $22 billion injection of liquidity by the BoJ, and this could buoy the USD/JPY over the near-term. The data wire will be relatively light tomorrow, highlighted by Australia and U.S. employment data. Additionally, investors should keep their eyes on the news wires considering the EU is still on shaky ground.
Technically speaking, the USD/JPY faces technical barriers in the form of multiple downtrend lines along with 5/10, 5/6, and 5/5 highs. Additionally, the psychological 95 area could serve as a solid barrier should it be tested. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday and 5/7 lows. Furthermore, the psychological 92 areas could continue to serve as a solid support over the near-term.
Present Price: 93.11
Resistances: 93.29, 93.43, 93.54., 93.64, 93.76, 93.95, 94.15
Supports: 93.06, 92.95, 92.82, 92.66, 92.50, 92.43, 92.32
Psychological: .93, .94, .92, .91, .90
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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