{"id":2391,"date":"2009-06-09T11:21:46","date_gmt":"2009-06-09T16:21:46","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2391"},"modified":"2009-06-09T11:21:46","modified_gmt":"2009-06-09T16:21:46","slug":"usdjpy-bows-to-our-3rd-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/09\/usdjpy-bows-to-our-3rd-tier-downtrend-line\/","title":{"rendered":"USD\/JPY Bows to Our 3rd Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is turning south from our 3rd tier downtrend line as we notice a Dollar appreciation across the board today.\u00a0 We haven\u2019t seen any abnormal volume to the upside on the 1-day chart, leading us to believe that the USD\/JPY may remain in its steady downtrend.\u00a0 It would take an aggressive movement to the upside past May highs and our downtrend lines on substantial volume for us to alter our negative outlook on the currency pair.\u00a0 On the other hand, we do notice some near-term downward pressure on both the GBP\/USD and EUR\/USD.\u00a0 If the USD\/JPY keeps its new negative correlation with these currency pairs and they weaken from further levels, the USD\/JPY could make a push for 100.\u00a0 However, the correlations between the USD\/JPY and these currency pairs are fragile because they exhibited a positive correlation since last September.\u00a0 It will be very interesting to see how the USD\/JPY behaves over the next few trading sessions, and whether the currency pair can piece together some upward momentum.<\/p>\n

Meanwhile, investors will keep a close watch on the Core Machinery Orders release from Japan later today.\u00a0 Core Machinery Orders are forward looking since the purchase of heavy machinery normally indicates an expected increase in production, telling us a lot about Japanese exports and consequently global demand and consumption.\u00a0 Core Machinery Orders have climbed back to respectable levels since January\u2019s shocking negative number.\u00a0 Analysts expect an increase of 0.1%, and the release is likely to be a market mover.<\/p>\n

Fundamentally, we find resistances of 97.98, 98.66, 99.49, 100.06, and 100.74.\u00a0 To the downside, we see supports of 97.45, 96.90, 96.33, 95.82, and 95.20.\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 97.60.<\/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 turning south from our 3rd tier downtrend line as we notice a Dollar appreciation across the board today.\u00a0 We haven\u2019t seen any abnormal volume to the upside on the 1-day chart, leading us to believe that the USD\/JPY may remain in its steady downtrend.\u00a0 It would take an … <\/p>\n

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