The USD/JPY is consolidating around its highly psychological 90 level as we witness a broad-based preference for the Dollar. However, focus could shift to the Yen soon since Japan will release Core Machinery Orders late Tuesday night EST along with a wave of Chinese econ data. Therefore, volatility could pick up in the next 24-48 hours, especially if the Asian data points outperform expectations. While analysts are expected continual growth in Japan's CMO data, China's numbers could have a larger impact considering it is Japan's largest trading partner. Further strength in China's economy implies greater demand for Japanese goods, thereby strengthening the Yen. On the other hand, weak Chinese econ data could rattle markets and send the USD/JPY back above 90.

Technically speaking, the psychological 90 area is proving to be a tough psychological area once again. The USD/JPY continues to gravitate towards 90 despite recent hints of a topside breakout. The currency pair is currently trading back below 90, yet is holding above our 1st and 2nd tier uptrend lines. Hence, there are a few more technical cushions separating the USD/JPY from a retest of October lows. As for the topside, the USD/JPY faces multiple downtrend lines along with 11/6 and 11/4 highs.

Present Price: 89.85

Resistances: 89.92, 90.06, 90.19, 90.31, 90.43, 90.58, 90.72

Supports: 89.71, 89.61, 89.43, 89.26, 89.15, 88.99, 88.83

Psychological: 90, November and October Lows