{"id":2205,"date":"2009-06-01T09:39:48","date_gmt":"2009-06-01T14:39:48","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2205"},"modified":"2009-06-01T09:39:48","modified_gmt":"2009-06-01T14:39:48","slug":"usdjpy-fights-back-above-our-2nd-tier-uptrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/01\/usdjpy-fights-back-above-our-2nd-tier-uptrend-line\/","title":{"rendered":"USD\/JPY Fights Back Above Our 2nd Tier Uptrend Line"},"content":{"rendered":"

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

The USD\/JPY is fighting back above our 2nd tier uptrend line again after U.S. Personal Spending came in slightly above analyst expectations.\u00a0 U.S. equity markets are reacting positively, giving USD\/JPY bulls an incentive to hold on.\u00a0 Additionally, U.S. Treasuries are attempting to stabilize while Geithner reassured the Chinese that U.S. debt is still a safe investment.<\/p>\n

Why is this important for the USD\/JPY?\u00a0 Well, investors have been selling the currency pair despite the uptrend in U.S. equities, showing a loss of confidence in the Dollar.\u00a0 The USD\/JPY is normally positively correlated with the S&P.\u00a0 With the Carry Trade burnt, investors are moving the currency based on more comparative economic fundamentals.\u00a0 The U.S. is making a concerted effort to restore faith in the Dollar, which is keeping the USD\/JPY afloat above our 2nd tier uptrend line.\u00a0 For if this trend line doesn\u2019t hold, we could witness a sharp reversal towards our 1st tier uptrend line as the currency pair buckles under the pressure of its downtrend.<\/p>\n

Action in the USD\/JPY serves as an important gauge as far as the Dollar is concerned.\u00a0 If the Yen continues to appreciate against the Dollar despite rising U.S. equities, this could be a sign of a loss of confidence in America\u2019s ability to balance its budget in the future.\u00a0 Therefore, it will be interesting to see if the USD\/JPY can rise should U.S. equities continue their breakout to the upside.<\/p>\n

On another note, Japan reported an encouraging improvement in Average Cash Earnings, another indicator that business is picking up.\u00a0 Therefore, all signs continue to point towards a global economic recovery\/stabilization.\u00a0 China\u2019s Manufacturing PMI is still showing expansion, which bodes well for Japanese exports due to the economic coupling of the two nations.<\/p>\n

Despite the USD\/JPY finding near-term support, we maintain our bearish outlook on the USD\/JPY trend wise.\u00a0 We haven\u2019t seen any game-changing, fundamental moves to the upside to swing the momentum.\u00a0 There are still 5 downtrend lines bearing down on price with the highly psychological 100 level hanging in the distance.\u00a0 However, the USD\/JPY may begin to wake from its sideways action as our trend lines collide.<\/p>\n

Fundamentally, we find resistances of 95.82, 96.33, 96.90, 97.45, and 97.98.\u00a0 To the downside, we see supports of 95.12, 94.43, 93.77, 93.11, 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 95.72.<\/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 is fighting back above our 2nd tier uptrend line again after U.S. Personal Spending came…<\/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-2205","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2205","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=2205"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2205\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}