{"id":2495,"date":"2009-06-16T07:34:37","date_gmt":"2009-06-16T12:34:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2495"},"modified":"2009-06-16T07:34:37","modified_gmt":"2009-06-16T12:34:37","slug":"usdjpy-sags-as-investors-flee-to-the-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/16\/usdjpy-sags-as-investors-flee-to-the-dollar\/","title":{"rendered":"USD\/JPY Sags as Investors Flee to the Dollar"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is selling off from our 3rd tier downtrend line after the currency pair failed to climb past previous June highs.\u00a0 Encouragingly, the pullback comes on declining volume while lacking the conviction to the downside like that of the EUR\/USD.\u00a0 We are not surprised by the USD\/JPY\u2019s current weakness, and the tango between the near-term uptrend and medium-term downtrend lives to see another day.\u00a0 While the USD\/JPY has made three consecutive declining highs with multiple downtrend lines bearing down on price, the currency still has two strong uptrend lines to fall back on.\u00a0 Hence, even though the power of the downtrend outweighs that of the uptrend, there is little evidence showing another collapse in the USD\/JPY is imminent.\u00a0 We could continue to see the currency pair trade within the range of our 1st tier uptrend line and 5th tier downtrend line as they slowly approach their respective inflection points.<\/p>\n

Meanwhile, any further systemic weakness in the global economy should have a corresponding impact on the appreciation of the Dollar.\u00a0 The USD\/JPY is reacting to yesterday\u2019s data showing that central banks are slowing their purchases of U.S. paper.\u00a0 Therefore, we suspect the USD\/JPY will exhibit a positive correlation with U.S. equities for the foreseeable futures since the fate of the Dollar relies upon the ability of the global economy to stabilize and recover from here.\u00a0 Further deterioration of the global economy could increase the likelihood of the world powers opting to replace the U.S. Dollar as the global standard for monetary pegs and transactions.<\/p>\n

Altogether, we maintain our negative outlook trend-wise on the USD\/JPY due to the precedence and strength of the downtrend.\u00a0 The currency pair has fallen below our 3rd tier uptrend line again.\u00a0 Keep an eye on our 2nd tier uptrend line.\u00a0 If this support doesn\u2019t, hold we could see the pullback pick up speed.\u00a0 The USD\/JPY is currently fighting to stay above April lows, and it is certainly plausible for the currency pair to hop back above our 3rd tier uptrend line should U.S. equities recover.<\/p>\n

Present Price: 96.46<\/p>\n

Resistances: 96.90, 97.45, 97.58, 98.66, 99.49.<\/p>\n

Supports: 96.33, 95.82, 95.20, 94.45, 93.76<\/p>\n

Psychological: 95, 100<\/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 selling off from our 3rd tier downtrend line after the currency pair failed to climb past previous June highs.\u00a0 Encouragingly, the pullback comes on declining volume while lacking the conviction to the downside like that of the EUR\/USD.\u00a0 We are not surprised by the USD\/JPY\u2019s current weakness, and … <\/p>\n

Continue reading “USD\/JPY Sags as Investors Flee to the Dollar”<\/span><\/a><\/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-2495","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2495","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=2495"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2495\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}