The USD/JPY made a positive recovery from Tuesday lows, though the small pop was backed by declining volume.  Hence, there remains an increasing interest to the downside in the currency pair.

The USD/JPY has climbed back above our important 2nd tier uptrend line, and is currently being squeezed between our 2nd tier downtrend line as the trend lines reach an inflection point.  Volatility didn't rise in the USD/JPY as we anticipated.  Instead, the currency pair is opting to continue its gradual crawl towards the middle.  If this process continues, then we'd expect to see another slight pop towards our 3rd tier uptrend line. 

The consistent balancing act exhibited by the USD/JPY reflects the investor indecisiveness prevalent in the market as a whole.  Therefore, as far as the USD/JPY is concerned, its next major trend-decision seems to rest on the shoulders on U.S. equities.  Are we witnessing a true economic recovery, or a head-fake created by global stimulus packages?  The USD/JPY is telling us that we will have to wait and see.          

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