USD/JPY Balances at 95 after Huge Gains in the GBP/USD, EUR/USD, Gold

By Fast Brokers – The USD/JPY has waded back above the psychological 95 level, looking to react positively to the inflection point of our 1st tier uptrend and 2nd tier downtrend lines.  The EUR/USD, GBP/USD, and gold are registering huge technical gains today after better than expected manufacturing data.  The USD/JPY is unwillingly participating to the upside since the currency pair is ultimately positively correlated to a global economic recovery.  While the USD/JPY hasn’t registered nearly as significant of a movement as its correlations, the USD/JPY could show a delayed reaction should the markets continue to qualify a legitimate recovery.  Therefore, the USD/JPY will likely sit tight until we see how the S&P futures handle their highly psychological 1000 level.  Should the S&P confirm a 1000+ future, the USD/JPY would likely join the party to the upside at this point.

Meanwhile, the USD/JPY will likely remain tethered to its highly psychological 95 level for the immediate-term.  The USD/JPY’s near-term resistances are 95, July 31 highs, and our 3rd tier downtrend line.  The currency pair will fight to stay above our 1st tier trend line in the meantime and solidify a solid base it can build from.  Investors will be digesting a large amount of data and central bank meetings over the next few sessions, meaning we don’t expect FX volatility to abate anytime soon.

Present Price: 95.27

Resistances: 95.41, 95.73, 96.33, 96.77, 96.96

Supports:  94.99, 94.49, 93.82, 93.28, 92.90

Psychological: 95

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