By Fast Brokers – The USD/JPY is hovering around its highly psychological 90 area as investors await America’s ISM Manufacturing PMI number. The USD/JPY rallied in reaction to Friday’s stronger than expected U.S. economic data. Therefore, another positive reading today could yield further topside movements in the currency pair. However, the USD/JPY still faces a wealth of topside technical barriers and it has a ways to go to remove the grips of its downtrend. Meanwhile, although China’s slightly weaker than expected Manufacturing PMI did illicit a little topside movement in the USD/JPY, the activity was not much to speak of. However, volatility could pick up during tomorrow’s Asia trading session with the RBA making a monetary policy decision. Though analyst are expecting a 25 basis point hike, the RBA could go either way since recent tightening from China and weak Australia PPI has placed a bit of pressure on the central bank. Japan will also release Cash Earnings data during tomorrow’s Asia trading session and investors are expecting a decline of -2.6%. Attention should remain on Australia and the U.S. for the next 24 hours with America also releasing Pending Home Sales tomorrow.
Technically speaking, the USD/JPY has multiple uptrend lines serving as technical cushions along with 1/28 and 1/22 lows. As for the topside, the USD/JPY faces multiple downtrend lines along with 1/29 and 1/20 highs. Furthermore, the .90 area could continue to have a psychological influence on the USD/JPY over the near-term.
Present Price: 90.28
Resistances: 90.46, 90.56, 90.67, 90.90, 91.04, 91.24
Supports: 90.22, 90.08, 89.97, 89.77, 89.58, 89.36
Psychological: 90, January highs and lows
Market Commentary provided by Fast Brokers.
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