USD/JPY Heads Towards its Psychological 95.00 level

The USD/JPY continues to head south from our 2nd tier uptrend line as the Yen participates in a broad depreciation of the Dollar. The Yen is also experiencing strength after Japan reported a higher than expected Trade Surplus, showing the Japanese export-reliant economy may be bottoming out. Japan’s economy is being supported by a comparatively stable level of export demand from China. Hence, as long as the prospect of GDP growth improves in China, Japan should benefit directly.

We believe leaving behind the 2nd tier uptrend line could prove to be a key technical move for the USD/JPY, possibly resulting in a decline towards our 1st tier uptrend line. The USD/JPY is beginning to test the patience of its uptrend. Should the currency pair fall beneath May lows towards our 1st tier uptrend line, the uptrend would be hanging on by a piece of thread. Therefore, the USD/JPY is entering a critical zone, and investors should keep a close eye on the technicals. Meanwhile, the USD/JPY may experience an increase in volatility today since the U.S. is reporting some key economic data along with the Fed’s monetary policy decision. Additionally, three sets of trend lines are reaching their respective inflection points. Hence, the environment exists for a substantial move in the USD/JPY today.

Present Price: 95.12

Resistances: 95.20, 95.82, 96.33, 96.90, 97.45

Supports: 94.45, 93.76, 93.32, 92.69, 92.04

Psychological: 90, 95, 100

FastBrokers

Disclaimer: FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. There is a substantial risk of loss in trading futures and foreign exchange. © Fast Trading Services, LLC. All materials are proprerty of Fast Trading services, LLC and unless otherwise indicated,any unauthorised reproduction is prohibited.