{"id":3039,"date":"2009-07-22T12:13:16","date_gmt":"2009-07-22T17:13:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3039"},"modified":"2009-07-22T12:13:16","modified_gmt":"2009-07-22T17:13:16","slug":"usdjpy-balances-on-our-1st-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/22\/usdjpy-balances-on-our-1st-tier-downtrend-line\/","title":{"rendered":"USD\/JPY Balances on our 1st Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY failed in its recent attempt to build positive momentum from our 1st tier uptrend line.\u00a0 The currency pair has since fallen back to our 1st tier downtrend line on declining volume.\u00a0 Though the currency pair is trading comfortably above July lows, investors are hesitant in making a larger, necessary commitment to the upside.\u00a0 Japan will release its trade balance late Wednesday and the data will monitored closely by investors.\u00a0 Analysts are expecting further improvement (0.51 trillion) from last month\u2019s surprising 0.22 trillion surplus.\u00a0 However, should the trade balance come in below June\u2019s release, the USD\/JPY could be under some near-term selling pressure.\u00a0 Investors should keep in mind last month\u2019s 0.22 trillion surplus was a vast improvement from Japan\u2019s budget deficit since September 2008.\u00a0 Therefore, expecting an increase from 0.22 to 0.51 trillion may be a bit bold.\u00a0 Though we anticipate an improvement from 0.22 trillion, we believe the trade balance number may not live up to expectations.\u00a0 We will just have to wait and see.<\/p>\n

Regardless of tomorrow\u2019s trade balance data, the behavior of the S&P futures should have a greater near-term impact on the USD\/JPY.\u00a0 If the S&P can manage to break free of 950 and 2009 highs, this could help the USD\/JPY strengthen back above its 1st tier uptrend line.\u00a0 A recovery in the U.S. economy trumps Japan\u2019s trade balance since this would imply an improvement in consumption and demand for Japanese exports.\u00a0 On the other hand, a large setback in Japan\u2019s trade balance could strike overall investor confidence since it implies global demand and consumption may not be picking up as much as anticipated.\u00a0 Technically speaking, our 1st tier uptrend and 2nd tier downtrend lines serve as near-term barriers along with the psychological 95 area.\u00a0 As for the downside, the USD\/JPY has our 1st tier downtrend line, previously July lows, and the highly psychological 90 level to fall back on.<\/p>\n

Present Price: 93.72<\/p>\n

Resistances: 93.82, 94.49, 94.99, 95.73, 96.33<\/p>\n

Supports:\u00a0 93.28, 92.90, 92.39, 91.75, 91.36<\/p>\n

Psychological: 95, 90<\/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 failed in its recent attempt to build positive momentum from our 1st tier uptrend line.\u00a0 The currency pair has since fallen back to our 1st tier downtrend line on declining volume.\u00a0 Though the currency pair is trading comfortably above July lows, investors are hesitant in making a larger, necessary … <\/p>\n

Continue reading “USD\/JPY Balances on our 1st Tier Downtrend Line”<\/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-3039","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3039","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=3039"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3039\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}