USD/JPY Trades Off Wednesday's Highs
The USD/JPY has pulled back from Wednesday's highs and is gravitating towards the psychological 90 level as we anticipated. The USD/JPY has managed to avoid a retest in the process, a somewhat positive development. China's economic data had a limited impact on the USD/JPY despite the rise in consumer prices and weakness in industrial production. Additionally, today's U.S. data has also had a muted influence on the USD/JPY today. Therefore, it seems investors are more focused on the currency pair's technical levels than global fundamental developments for the time being. However, that could change tomorrow with the release of America's retail sales and consumer sentiment data. We've really seen the USD/JPY react to U.S. data lately. Considering U.S. consumption has a direct impact on Japan's manufacturing base, we could see the USD/JPY come back to life tomorrow. Strong U.S. consumption could send the USD/JPY higher in anticipation that the Fed will tighten before the BoJ, whereas negative data releases could send the USD/JPY back towards its psychological 90 level. Therefore, investors should keep a sharp eye on tomorrow's data wire.
Technically speaking, the USD/JPY faces our new downtrend lines along with intraday and 2/7 highs. Meanwhile, the highly psychological 90 area could have an influence over the USD/JPY's movements for the near-term. As for the downside, the USD/JPY has multiple uptrend lines serving as technical cushions along with intraday and 3/9 lows.
Present Price: 90.44
Resistances: 90.49, 90.54, 90.63, 90.69, 90.81, 90.89
Supports: 90.35, 90.29, 90.17, 90.11, 90.02, 89.95
Psychological: 90, March highs
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