By Fast Brokers – The USD/JPY has battled back above our 1st tier uptrend line, and is trading just below our 2nd tier downtrend line as the trend lines approach their inflection point. The USD/JPY’s rise is impressive considering the large declines taking place in gold and the EUR/USD. Investors are paying more attention to the worse than expected retail sales from Japan late Tuesday coupled with relative stability in the S&P futures. The contrast of a weak Japanese economy with a comparatively stable American economy is leading investors to favor the Dollar over the Yen. Meanwhile, the inflection point of our trend lines could signal a large movement approaching. The USD/JPY has been bobbling between our 1st tier uptrend and 2nd tier downtrend lines for a few days now, indicating they have importance for the immediate-term.
Japan will release its monthly industrial production number later today. Analysts are anticipated a sizable decline from the previous release. However, should industrial production come in weaker than expected and the S&P futures experience profit taking, the USD/JPY could decide to head south again. On the other hand, if tonight’s release is worse than expected and the S&P futures continue to consolidate, the USD/JPY could experience more near-term strength since investors would likely favor the Dollar over the Yen again. Meanwhile, investors should keep a watch on volume considering an inflection point is occurring.
Present Price: 94.94
Resistances: 94.99, 95.73, 96.33, 96.77, 97.20
Supports: 94.49, 93.82, 93.28, 92.90, 92.39
Psychological: 95
Market Commentary provided by Fast Brokers.
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