Sep
4
2010
4
2010
USD/JPY Looks to Defend August Lows
The USD/JPY experienced another volatile trading session on Friday as investors reacted to better than expected U.S. non-farm payrolls data. While investors initially bought up the USD/JPY and sent the currency pair climbing above its psychological 85 level, bears countered and held the currency down around weekly lows. However, the USD/JPY has managed to avoid a retest of August lows, meaning the USD/JPY may be building a new, more sustainable bottom. The resilience of August lows will depend highly upon economic performance in the U.S. since the BOJ has thus far refused to give into those requested currency intervention. If U.S. fundamentals can manage to stabilize and improve then investors would have more incentive to buy the USD/JPY as the risk trade regains its luster. Looking ahead, Monday should be a relatively quiet trading session since American investors will be celebrating the Labor Day holiday. Hence, investor sentiment could continue to improve over the near-term, allowing the USD/JPY’s August lows to solidify.
Technically speaking, the USD/JPY has supports in the form of 9/2 and 9/1 lows. As for the topside, the USD/JPY faces technical barriers in the form of 9/3 highs and the psychological 85 level.
Present Price: 84.39
Resistances: 84.47, 84.57, 84.68, 84.81, 84.90, 85.04
Supports: 84.25, 84.15, 83.98, 83.89, 83.70, 83.57
Psychological: 85, August Lows
|
Posted by: Matthew Myers
|
Disclaimer: FastBrokers' market commentary is provided for information purposes only and under no circumstances should be regarded neither as investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.