Markets Mixed, USD/JPY Pivots From Daily Highs

Wall Street is off and running for the week, with action largely mixed for U.S. equities. At the halfway point of the trading session, the DJIA DOW (-33), S&P 500 SPX (+14), and NASDAQ (+171) are mixed. Once again, big tech and growth stocks are pacing gainers. Safe-havens are trading largely flat, with GOLD, the USD/CHF, and USD/JPY entering rotation.

Today’s American economic calendar is vacant. The only scheduled events worthy of note were this morning’s debt auctions. Here’s a look at the highlights:

Event                                                     Actual            Previous

3-Month T-Bill Auction                         0.120%            0.145%                      

6-Month T-Bill Auction                         0.130%             0.145%

Yields are down on short-term U.S. Treasuries as institutional players continue their bond-buying programs. At this point, it looks like the FED is in no hurry to cut back on its open market operations. Even with the FED’s balance sheet trending toward US$6 trillion, “QE Unlimited” continues to live up to its name. 

Let’s dig into the USD/JPY daily technicals and see where this market stands.

USD/JPY Extends Rotational Pattern

For the past five sessions, the USD/JPY has traded in the vicinity of 107.00. Earlier today, it looked like this pair was destined for a bullish breakout following the BoJ release. Now, rates are well off intraday highs.

Here are the key levels to watch for the remainder of the session:

• Support(1): Daily SMA, 107.27
• Support(2): Bollinger MP, 107.21

Overview: For the time being, the USD/JPY continues to rotate near the Daily SMA and Bollinger MP. Today’s forex close is going to be an important one for this pair. If rates settle above downside support, the table will be set for a run at topside resistance at 107.96. If not, a test of 106.50 is probable by Friday’s closing bell.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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