{"id":3544,"date":"2009-08-28T09:52:19","date_gmt":"2009-08-28T14:52:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3544"},"modified":"2009-08-28T09:52:19","modified_gmt":"2009-08-28T14:52:19","slug":"usdjpy-declines-as-dpj-looks-to-take-control","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/28\/usdjpy-declines-as-dpj-looks-to-take-control\/","title":{"rendered":"USD\/JPY Declines as DPJ Looks to Take Control"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is weakening despite disappointing Japanese data combined with positively mixed U.S. numbers.\u00a0 This combination of economic data would normally be a positive catalyst for the USD\/JPY due to the outperformance of the U.S. economy vs. the Japanese economy.\u00a0 Furthermore, the added signs that the global economic recovery is spreading would usually lead investors to sell the Yen and snatch up riskier currencies.\u00a0 However, the trading today seems to be more focused on the governmental election taking place in Japan.\u00a0 It seems the LDP will lose power for the first time in 50 years.\u00a0 Investors are speculating that the DPJ\u2019s more conservative fiscal approach may result in a stronger Yen.\u00a0 Hence, we see the Yen appreciating not only against the Dollar, but also against the Pound and the Euro as well.\u00a0 Furthermore, even though we\u2019ve received some positive economic data from the West, the consumption-oriented numbers left something to be desired.<\/p>\n

U.S. and British consumer confidence readings showed little improvement while U.S. Unemployment Claims and Personal Spending remain at discouraging levels.\u00a0 Furthermore, Core Durable Goods Orders came in two basis points below analyst expectations earlier this week.\u00a0 Lastly, China has decided to reign in its liquidity to try and deflate asset bubbles.\u00a0 The combination of these economic developments does not bode well for the demand for Japanese exports.\u00a0 Hence, Japan\u2019s struggling economy may not have much relief in sight.\u00a0 Japanese consumer prices are sinking while household spending declines, both are ramifications of rising unemployment.<\/p>\n

Negative economic data and a shift in governmental power seem to have investors favoring the Yen.\u00a0 The USD\/JPY is trading back below our 1st tier and 2nd tier uptrend lines, a risky move technically.\u00a0 All of the sudden the USD\/JPY is reconsidering a test of July lows.\u00a0 Meanwhile, the
\nUSD\/JPY has several difficult downtrend lines bearing overhead, telling us momentum is turning in favor of the bears again.\u00a0 Japan will release more important economic data to kick off the next trading week, including Prelim Industrial Production, Retail Sales, and Average Cash Earnings.\u00a0 The combination of a governmental election and more key economic data should result in rising volatility.\u00a0 Additionally, investors will receive important economic data from the U.S., China, and the EU.\u00a0 Therefore, investors should fasten their seatbelts and keep an eye on the shifting fundamentals.<\/p>\n

Present Price: 93.52<\/p>\n

Resistances: 93.42, 93.27, 93.08, 92.85, 92.68<\/p>\n

Supports:\u00a0 93.47, 93.88, 94.08, 94.25, 94.44<\/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 is weakening despite disappointing Japanese data combined with positively mixed U.S. numbers.\u00a0 This combination of economic data would normally be a positive catalyst for the USD\/JPY due to the outperformance of the U.S. economy vs. the Japanese economy.\u00a0 Furthermore, the added signs that the global economic recovery is spreading … <\/p>\n

Continue reading “USD\/JPY Declines as DPJ Looks to Take Control”<\/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-3544","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3544","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=3544"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3544\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}