FXstreet.com (Barcelona) - After rising around 50 pips during the European session from intra-day low at 88.65 to hit daily high at 89.15, USD/JPY has begun to fall to trade below 89.00 level, close to 88.80. Currently the pair is trading around 88.90/89.00, close to the opening price action at 89.95.
According to the FastBrokers Research Team, the USD/JPY glides lower amid weakness in U.S. equities: The USD/JPY is presently fighting to stay above our 1st uptrend line and the 89 level. Should our 1st tier give way, the currency pair still has 10/2 lows along with October lows serving as technical cushions. As for the topside, the USD/JPY faces multiple downtrend lines along with the highly psychological 90 level. Therefore, quite a few topside challenges are in place. Meanwhile, investors should continue to monitor the S&P's continual interaction with 1100 since any significant technical movements in U.S. equities could have a noticeable impact on the USD/JPY.