FXstreet.com (CÃ³rdoba) - USD/JPY fell earlier to 93.40 posting a fresh intra-day low. The pair then recovered and rose to 93.60, which has become an important resistance zone. Greenback has recovered and now is at the same levels it had at the time of the opening bell at Wall Street. For the day, the Dollar is up 0.10% but far from intra-day high (94.05). Above 93.60 the next resistance is located at 93.75.
The FastBrokers Research Team afirms: Negative economic data and a shift in governmental power seem to have investors favoring the Yen. The USD/JPY is trading back below our 1st tier and 2nd tier uptrend lines, a risky move technically. All of the sudden the USD/JPY is reconsidering a test of July lows. Meanwhile, the USD/JPY has several difficult downtrend lines bearing overhead, telling us momentum is turning in favor of the bears again. Japan will release more important economic data to kick off the next trading week, including Prelim Industrial Production, Retail Sales, and Average Cash Earnings. The combination of a governmental election and more key economic data should result in rising volatility. Additionally, investors will receive important economic data from the U.S., China, and the EU. Therefore, investors should fasten their seatbelts and keep an eye on the shifting fundamentals.