By Fast Brokers – The USD/JPY is trading off of intraday highs after rallying in light of the RBA keeping its benchmark rate unchanged. The RBA’s decision led to risk aversion, benefitting the USD/JPY. Additionally, Japan’s Average Cash Earnings data printed much weaker than analyst expectations, leading investors to favor the Dollar over the Yen in light of recent impressive U.S. economic data. However, the USD/JPY is drifting back towards its psychological 90 level as analysts await U.S. Pending Home Sales. The USD/JPY’s behavior has been a bit unpredictable as of late considering the market turmoil taking place around the globe. Meanwhile, it seems the BoJ’s commitment to a loose monetary policy coupled with strong U.S. economic data has resulted in an upward momentum in the USD/JPY. This momentum could be tested soon considering the U.S. will also release Services PMI and ADP Non-Farm Employment Change data tomorrow. Should U.S. data releases disappoint, this would likely drive the USD/JPY lower, and vice versa.
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: 90.33
Resistances: 90.46, 90.56, 90.69, 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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