{"id":3877,"date":"2009-09-17T13:44:24","date_gmt":"2009-09-17T18:44:24","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3877"},"modified":"2009-09-17T13:44:24","modified_gmt":"2009-09-17T18:44:24","slug":"usdjpy-consolidates-above-90","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/17\/usdjpy-consolidates-above-90\/","title":{"rendered":"USD\/JPY Consolidates Above 90"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY has received considerable support at the highly psychological 90 level over the past 24 hours.\u00a0 Strength in the USD\/JPY comes despite broad-based weakness in the Dollar and new 2009 highs in gold.\u00a0 The USD\/JPY\u2019s resilience is a result of two factors.\u00a0 The first being the BoJ\u2019s cautionary tone despite a little better overall outlook for Japan\u2019s economy.\u00a0 Japan\u2019s economy clearly remains in tough spot since manufacturers and exporters are facing a strong Yen globally.\u00a0 It\u2019s likely the BoJ will refrain from tightening liquidity any time soon due to the unstable state of the nation\u2019s economy.\u00a0 The psychological impact of loose monetary policy combined with this week\u2019s strong U.S. economic data is helping the USD\/JPY find strong support at 90.\u00a0 The second, and more prevalent, reason for the USD\/JPY\u2019s positive performance despite global weakness in the Dollar is the psychological weight carried by 90.\u00a0 The defense of 90 is to be expected, and the USD\/JPY has strong historical support between 88 and 90.\u00a0 Hence, the USD\/JPY has limited space to move to the downside over the immediate-term.<\/p>\n

However, regardless of present support, the USD\/JPY\u2019s medium-term downtrend is still in the driver\u2019s seat.\u00a0 While the currency pair may experience a little more immediate-term movement to the topside, the USD\/JPY remains in a downward trajectory.\u00a0 The DPJ\u2019s victory only adds strength to the USD\/JPY\u2019s downward momentum since the new administration favors a stronger Yen and less reliance on exports.\u00a0 Additionally, breakouts in the EUR\/USD, gold, and U.S. equities could continue this Autumn.\u00a0 If so, we would only witness more selling interest in the Dollar.<\/p>\n

Meanwhile, we\u2019ve readjusted our trend lines to compensate for the USD\/JPY\u2019s recent downturn.\u00a0 The currency pair faces four solid downtrend lines to the topside along with 9\/9 and 9\/7 highs.\u00a0 As for the downside, the USD\/JPY has our 1st and 2nd tier uptrend lines along with Wednesday lows and the highly psychological 90 level serving as cushions.\u00a0 Though we have a slightly optimistic outlook on the USD\/JPY for the immediate-term, we maintain a negative outlook on the currency pair over the near and medium-term.<\/p>\n

Present Price: 91.25<\/p>\n

Supports:\u00a0 91.18, 90.96, 90.78, 90.57, 90.26<\/p>\n

Resistances:\u00a0 91.43, 91.65, 91.84, 92.04, 92.24<\/p>\n

Psychological: 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 has received considerable support at the highly psychological 90 level over the past 24 hours.\u00a0 Strength in the USD\/JPY comes despite broad-based weakness in the Dollar and new 2009 highs in gold.\u00a0 The USD\/JPY\u2019s resilience is a result of two factors.\u00a0 The first being the BoJ\u2019s cautionary tone despite … <\/p>\n

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