The USD/JPY is recovering from its earlier losses and has climbed back above the psychological 95 level and our 1st tier downtrend line.

Furthermore, the currency pair is fighting above our near-term trend line showing investors are hesitating to capitulate. Despite the recent stability, the medium-term downtrend is back in control after the USD/JPY decided to head south out of the February trading range.

The quantitative easing actions of Japan and the U. S. are now competing against each other in terms of severity vs. GDP. Investors are showing the quant. easing of the U. S. overcomes that of Japan for the time being.

However, to give bulls some sense of comfort, the USD/JPY still has January highs and 2008 lows to fall back on. Regardless, our outlook on the USD/JPY is negative until the currency pair makes a fundamental move upwards, countering the one made on Wednesday.

Fundamentally, we find resistances of 95.92, 96.65, 97.49, and 98.11. To the downside, we see supports of 95.08, 94.57, 93.73, and 93.06. The USD/JPY is currently exchanging at 95.18.

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