{"id":3472,"date":"2009-08-25T09:17:16","date_gmt":"2009-08-25T14:17:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3472"},"modified":"2009-08-25T09:17:16","modified_gmt":"2009-08-25T14:17:16","slug":"usdjpy-heads-higher-after-improvement-in-america%ef%bf%bds-hpi","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/25\/usdjpy-heads-higher-after-improvement-in-america%ef%bf%bds-hpi\/","title":{"rendered":"USD\/JPY Heads Higher after Improvement in America\ufffds HPI"},"content":{"rendered":"

By Fast Brokers <\/strong>– Investors are nibbling on the USD\/JPY after America\u2019s HPI data came in nine basis points ahead of analyst expectations.\u00a0 The USD\/JPY has experienced encouraging support in our 1st tier uptrend and 2nd tier downtrend lines while bulls work to avoid a retest of July lows.\u00a0 It remains to be seen whether the USD\/JPY will opt to participate in a broad-based depreciation of the Dollar or choose to recover with U.S. equities.\u00a0 The decision will likely depend on the comparative performance of U.S. and Japanese economic data.\u00a0 Thus far, America\u2019s economic data hasn\u2019t been faring much better than Japan\u2019s.\u00a0 Therefore, the Yen has appreciated against the Dollar despite breakouts in the S&P futures.\u00a0 Speaking of which, the S&P futures are separating themselves from 1000, and it will be interesting to see if the USD\/JPY participate to the topside should U.S. equities continue their impressive climb.<\/p>\n

Japan will release its Trade Balance during America\u2019s evening session, creating the possibility of heightened volatility in the USD\/JPY.\u00a0 Japan will also deliver Household Spending and its Tokyo Core CPI data points on Thursday.\u00a0 Investors will be eyeing tonight\u2019s Trade Balance data to see whether there is a noticeable improvement in demand for Japan\u2019s exports.\u00a0 A larger than expected surplus coupled with an outperformance in exports could help fuel an immediate-term global equity rally.\u00a0 However, it remains to be seen whether stronger Japanese data would have a positive or negative impact on the USD\/JPY.\u00a0 While investors would expect the USD\/JPY to exhibit a positive correlation with U.S. equities should Japan\u2019s data beat expectations, investors could opt to favor the Yen over the Dollar instead.\u00a0 On the other hand, underperformance of Japan\u2019s economic data coupled with rising U.S. equities would likely result in a healthy rise in the USD\/JPY.<\/p>\n

Meanwhile, the USD\/JPY faces sizable medium-term downward pressure considering all of our downtrend lines the currency pair faces, not to mention the highly psychological 100 level waiting patiently in the distance.\u00a0 If our 1st tier uptrend line doesn\u2019t hold, the USD\/JPY could experience another leg down.\u00a0 As for the topside, bulls are hoping to get the USD\/JPY back above its psychological 95 level.\u00a0 Regardless, we anticipate heightened near-term volatility with the flood of economic data.\u00a0 Our prediction is reinforced by the inflection points of our 1st tier uptrend and 2nd tier downtrend lines and our 2nd tier uptrend and 3rd tier downtrend lines.<\/p>\n

Present Price: 94.22<\/p>\n

Resistances: 94.53, 94.71, 94.95, 95.26, 95.54<\/p>\n

Supports:\u00a0 94.08, 93.88, 93.65, 93.42, 93.27<\/p>\n

Psychological: 95<\/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 – Investors are nibbling on the USD\/JPY after America\u2019s HPI data came in nine basis points ahead of analyst expectations.\u00a0 The USD\/JPY has experienced encouraging support in our 1st tier uptrend and 2nd tier downtrend lines while bulls work to avoid a retest of July lows.\u00a0 It remains to be seen whether … <\/p>\n

Continue reading “USD\/JPY Heads Higher after Improvement in America\ufffds HPI”<\/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-3472","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3472","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=3472"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3472\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}