By Fast Brokers – The USD/JPY is deflecting from our 2nd tier downtrend line as it gradually reaches an inflection point with our 1st tier uptrend line. The currency pair is following U.S. equities lower with investors locking in profits after today’s mixed earnings and economic data releases. The USD/JPY is logging moderate losses after the currency pair gave bulls hope by bouncing off of our 1st tier uptrend line. Meanwhile, we still haven’t seen a real commitment to the upside with volume on a steady decline since July lows. It seems the USD/JPY has little independent strength, and its stabilization/recovery depends largely upon the uptrend in U.S. equities. Japanese economic data provides little evidence supporting a sustainable recovery in the country’s manufacturing/export sectors. Hence, the S&P’s ability to gather itself after profit taking and make a move for 1000 could be key for the USD/JPY in piecing together a noteworthy rally of its own. Meanwhile, the USD/JPY has a few cushions to the downside, including 7/23 lows and our 1st tier downtrend line. As for the upside, the USD/JPY needs to overcome our 2nd tier downtrend line and leave the psychological 95 area behind before even considering a move towards our 3rd tier downtrend line.
Present Price: 94.76
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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