By Fast Brokers
The USD/JPY is exhibiting some interesting consolidative volatility while bouncing between our 2nd tier uptrend and downtrend lines. It seems this pattern could continue until these two trend lines reach an inflection point, which may not be until Friday’s trading session. Meanwhile, the GBP/USD, and EUR/USD are encountering some technical obstacles, indicating slightly consolidative patterns until Thursday’s double-header ECB and BOE meetings. The USD/JPY remains encouragingly above March 19 lows and is slowly floating north. Therefore, the USD/JPY’s uptrend has a faint glimmer of hope. The uptrend may ultimately rely upon a continued rise in the S&P coupled with investors regaining confidence in the viability of the U.S. Dollar. However, despite the USD/JPY finding near-term support, we maintain our bearish outlook on the USD/JPY trend wise. We haven’t seen any game-changing, fundamental moves to the upside to swing the momentum. There are still 5 downtrend lines bearing down on price with the highly psychological 100 level hanging in the distance. However, the USD/JPY may begin to wake from its sideways action as our trend lines collide.
Fundamentally, we maintain resistances of 95.82, 96.33, 96.90, 97.45, and 97.98. To the downside, we hold our supports of 95.12, 94.43, 93.77, 93.11, and 92.65. The 100 level serves as a key psychological barrier with 95 acting as a psychological cushion. The USD/JPY is currently exchanging at 95.73.
Market Commentary provided by Fast Brokers.
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