{"id":10054,"date":"2010-06-08T09:16:50","date_gmt":"2010-06-08T13:16:50","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10054"},"modified":"2010-06-08T09:16:50","modified_gmt":"2010-06-08T13:16:50","slug":"usdjpy-consolidates-as-markets-breathe","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/08\/usdjpy-consolidates-as-markets-breathe\/","title":{"rendered":"USD\/JPY Consolidates as Markets Breathe"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is locked between trend lines as the currency pair consolidates between\u00a0 91-92 with investors taking a breather and digesting the events of last week.\u00a0 Naoto Kan is taking over as finance minister today, allowing the USD\/JPY to settle after intense volatility following Hatoymama\u2019s resignation.\u00a0 Kan\u2019s reign could be brief considering upper house elections take place next month.\u00a0 Meanwhile, Kan will try to reassure investors and creditors that Japan\u00a0 can be more conservative fiscally in order to avoid another downgrade of its debt.\u00a0 However, investors remain focused on the EU as finance ministers meet to discuss recent developments in Spain and Hungary.\u00a0 If the EUR\/USD is unable to hold 1.20 and the currency pair\u2019s downturn continues then the USD\/JPY could be dragged lower since the yen is still a safe haven asset during moments of heightened uncertainty.\u00a0 On the other hand, in the past Kan expressed his preference for a weaker yen and this could keep the USD\/JPY propped up until investors see how he behaves as prime minister.\u00a0 Regardless, the BoJ was able to ignore Hatoyma\u2019s plea for a weaker yen and it\u2019s hard to imagine why the central bank\u2019s policy would shift just because Kan moved up from FM to PM.\u00a0 Meanwhile, the data wire will be light around the globe over the next 48 hours, meaning psychological forces are still in the driver\u2019s seat.\u00a0 Hence, keep an eye on those news wires for any pertinent events.
\nTechnically speaking, the USD\/JPY faces multiple downtrend lines along with 6\/7 and 6\/4 highs.\u00a0 As for the downside, the USD\/JPY has technical supports in the form of multiple uptrend lines along with 6\/7 and 6\/1 lows.\u00a0 Additionally, the highly psychological 90 level should serve as a solid technical support should it be tested.<\/p>\n

Present Price: 91.62
\nResistances: 91.70, 91.80, 91.97., 92.11, 92.25, 92.39, 92.58
\nSupports:\u00a0 91.53, 91.38, 91.29, 91.13, 91, 90.86, 90.74, 90.62
\nPsychological:\u00a0 .90, .92, June highs and lows<\/p>\n

\"\"<\/a><\/p>\n

(click chart to enlarge)<\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The USD\/JPY is locked between trend lines as the currency pair consolidates between\u00a0 91-92 with investors taking a breather and digesting the events of last week.\u00a0 Naoto Kan is taking over as finance minister today, allowing the USD\/JPY to settle after intense volatility following Hatoymama\u2019s resignation.\u00a0 Kan\u2019s reign could be brief … <\/p>\n

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