The USD/JPY made a concerted effort to get back above our 1st tier uptrend line in a bid to return to a safety zone. The USD/JPY showed some upward mobility, exercising its positive correlation with U. S. equities. The S&P futures logged considerable gains, and the USD/JPY was inclined to follow suit, tagging along with the concept of a global economic recovery.

However, the currency pair was batted away by our 1st tier uptrend line due to insufficient volume. Regardless, it’s an encouraging progression since the USD/JPY was recently flirting with the idea of retesting the highly psychological 90 level. The USD/JPY is hovering back around our 1st tier downtrend line with the S&P futures trying to add onto yesterday’s gains.

Should the S&P follow with its technical upside breakout, the USD/JPY should edge back into its uptrend. However, the USD/JPY is still trading in a dangerous zone and investors should exercise a bit of caution for the immediate-term.

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