{"id":3500,"date":"2009-08-26T12:10:40","date_gmt":"2009-08-26T17:10:40","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3500"},"modified":"2009-08-26T12:10:40","modified_gmt":"2009-08-26T17:10:40","slug":"usdjpy-perks-up-in-reaction-to-weak-u-s-core-dgo-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/26\/usdjpy-perks-up-in-reaction-to-weak-u-s-core-dgo-data\/","title":{"rendered":"USD\/JPY Perks up in Reaction to Weak U.S. Core DGO Data"},"content":{"rendered":"

By Fast Brokers <\/strong>– The USD\/JPY moved higher after U.S. Core Durable Goods data printed two basis points below analyst expectations.\u00a0 However, the currency pair is returning some of its gains in reaction to a better than expected showing from New Home Sales.\u00a0 In addition to America\u2019s wave of data today, investors should keep in mind Japan reported a weaker than expected Trade Balance late Tuesday in the wake of light demand for the nation\u2019s exports.\u00a0 The USD\/JPY\u2019s movement in reaction to this data flow tells us the currency pair is opting to participate in broad-based Dollar sentiment rather than comparative economic performances between the two countries.\u00a0 However, DGO number is certainly capping gains in the USD\/JPY since it only provides less incentive for investors to favor the Dollar over the Yen.\u00a0 The weak Japanese export data is disconcerting and puts more pressure on the BOJ to stimulate the economy.\u00a0 Although, the BOJ likely won\u2019t act until it sees the results of Japan\u2019s general election.\u00a0 Japan\u2019s election will be watched closely since a defeat of the LDP would likely present a fundamental shift in political and economic policy.\u00a0 The LDP has run Japan for the past 50 years, so it will be interesting to see how the Yen reacts should the LDP lose as polls predict.<\/p>\n

Japan will release more data tomorrow including Household Spending and the Tokyo Core CPI.\u00a0 Beforehand, the U.S. and Britain will release heavily-weighted data points of their own.\u00a0 We recognize multiple inflection points occurring in the USD\/JPY, implying volatility could increase over the next 24-48 hours.\u00a0 Meanwhile, the USD\/JPY continues to balance along our 1st tier uptrend and 2nd tier downtrend lines as bulls fight to get the currency pair back above its psychological 95 level.\u00a0 Broad-based appreciation of the Dollar continues to be the theme around the FX markets with sizable pullbacks occurring in both the GBP\/USD and EUR\/USD.\u00a0 The Dollar\u2019s overall strength is helping buoy the USD\/JPY, and may result in nice pop tomorrow should the pattern continue with tons of economic data and heightened volatility.\u00a0 If the USD\/JPY\u2019s upward momentum should carry it beyond 95, the currency pair will have to deal with our 3rd tier downtrend line next along with 7\/31 highs.<\/p>\n

Present Price: 94.42<\/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 – The USD\/JPY moved higher after U.S. Core Durable Goods data printed two basis points below analyst expectations.\u00a0 However, the currency pair is returning some of its gains in reaction to a better than expected showing from New Home Sales.\u00a0 In addition to America\u2019s wave of data today, investors should keep in … <\/p>\n

Continue reading “USD\/JPY Perks up in Reaction to Weak U.S. Core DGO Data”<\/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-3500","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3500","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=3500"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3500\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}