The USD/JPY is bouncing around the 89 level despite today's high volatility in the Pound and Euro. Although Japan has been quiet on the wire today, it will reenter the fray tomorrow by releasing Household Spending and its headline Unemployment Rate. Meanwhile, the USD/JPY has exhibited a muted reaction to China's weaker than expected Manufacturing PMI data. A slight cool down in China could have a negative impact on Japan's manufacturing base. Investors are currently awaiting America's Manufacturing PMI due shortly. It will be interesting to see whether the USD/JPY ends up reacting to today's heavy volatility in the European currencies. On a positive note, the USD/JPY is still trading above February lows. However, the currency pair is also trading below its highly psychological 90 level. Therefore, the USD/JPY appears to be jammed between two strong technical areas. Investors should continue to keep an eye on the news wire for anymore statements from either the DPJ or the BoJ. Disagreements between to the two led to the USD/JPY's sizable selloff last week.
Technically speaking, the USD/JPY has multiple uptrend lines serving as technical supports along with February lows. As for the topside, the USD/JPY faces multiple downtrend lines along with 2/26 highs and the highly psychological 90 level should it be tested.
Present Price: 89.23
Resistances: 89.28, 89.35, 89.41, 89.50, 89.50, 89.59
Supports: 89.19, 89.10, 89.04, 88.93, 88.84, 88.73
Psychological: 90, February lows