{"id":2183,"date":"2009-05-29T08:49:00","date_gmt":"2009-05-29T13:49:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2183"},"modified":"2009-05-29T08:49:00","modified_gmt":"2009-05-29T13:49:00","slug":"yen-strengthens-on-improvement-in-industrial-production","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/29\/yen-strengthens-on-improvement-in-industrial-production\/","title":{"rendered":"Yen Strengthens on Improvement in Industrial Production"},"content":{"rendered":"

By Fast Brokers<\/span><\/p>\n

The USD\/JPY\u2019s run is fading quickly, backing away from our 2nd tier downtrend line while giving into the heavy downward pressures exerted on price.\u00a0 Present weakness in the USD\/JPY comes after a head-turning 5.2% growth in industrial production, giving investors incentive to appreciate the Yen.\u00a0 Investors seem to be ignoring the decline in consumer prices and spending.\u00a0 We have seen improvement in machinery orders, exports, and now industrial production.\u00a0 Therefore, it seems the drivers of growth are recovering, meaning consumer behavior should improve soon as well.<\/p>\n

Interestingly, investors are showing preference for the Yen vs. the Dollar, meaning the Japanese economy and balance sheet may be in better shape than America\u2019s.\u00a0 We notice the broad-based depreciation of the Dollar.\u00a0 Now that the global economy is stabilizing, the U.S. will have to deal with the ramifications of its extraordinary injection of liquidity.\u00a0 Unfortunately for Japan, the longer the Yen trades at an elevated valuation against the Dollar, the longer exports to the U.S. will be hampered.<\/p>\n

We can tell you that not much has changed fundamentally for the USD\/JPY.\u00a0 Though Thursday\u2019s gains came on rising volume, total volume was nothing to brag about.\u00a0 The currency pair is declining back towards our 1st tier downtrend line with 4 more downtrend lines bearing overhead, not to mention the highly psychological 100 level resting well out of reach.\u00a0 Therefore, we maintain our bearish outlook trend-wise on the USD\/JPY.\u00a0 Bulls have their work cut out for them.\u00a0 The first key to the uptrend will be holding our 2nd tier uptrend line.\u00a0 If this line of defense doesn\u2019t hold, we could see the present pullback pick up speed.<\/p>\n

Fundamentally, we find resistances of 96.33, 96.90, 97.45, 97.98, and 98.69.\u00a0 To the downside, we see supports of 95.82, 95.12, 94.43, 93.77, and 92.65.\u00a0 The 100 level serves as a key psychological barrier with 95 acting as a psychological cushion.\u00a0 The USD\/JPY is currently exchanging at 95.80.<\/p>\n

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

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

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither 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\u2019s run is fading quickly, backing away from our 2nd tier downtrend line while giving into the heavy…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2183","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=2183"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2183\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}