{"id":4043,"date":"2009-09-28T11:01:56","date_gmt":"2009-09-28T16:01:56","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4043"},"modified":"2009-09-28T11:01:56","modified_gmt":"2009-09-28T16:01:56","slug":"usdjpy-recovers-after-heading-towards-january-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/28\/usdjpy-recovers-after-heading-towards-january-lows\/","title":{"rendered":"USD\/JPY Recovers After Heading Towards January Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY\u2019s long-term downtrend kicked in much quicker than we anticipated.\u00a0 The psychological 90 level didn\u2019t put up much of a fight, certainly a negative technical sign.\u00a0 Investors continued to snatch up the Yen after the BoJ confirmed that it may be less inclined to intervene in FX markets than the previous administration.\u00a0 The psychological plays by the BoJ and DPJ are having a profound impact on currency markets, driving down the USD\/JPY towards previous 2009 and 2008 lows.\u00a0 Hence, the USD\/JPY is flirting with historical levels once again.\u00a0 A compromise of December 2008 lows would knock the currency pair into levels not witnessed in over a decade.<\/p>\n

The saving grace for the USD\/JPY over the immediate-term would be stronger than expected industrial production and TMI data later this week.\u00a0 Strong Japanese economic data could help buoy the USD\/JPY for the time being and allow the currency pair to regain its footing.\u00a0 However, we notice a cool down in global economic data.\u00a0 The dip in global econ data combined with an extraordinarily strong Yen has likely hindered Japan\u2019s economic recovery since the economy is highly reliant on exports and manufacturing.\u00a0 Disappointing Durable Goods orders from the U.S. last Friday is certainly a cause for concern.\u00a0 More weak consumption data out of the U.S. tomorrow could place additional downward pressure on the USD\/JPY.\u00a0 Investors will also be keeping a close eye on China\u2019s Manufacturing PMI release on Wednesday.\u00a0 China has been the engine of the global economic recovery.\u00a0 A slowdown in Japan\u2019s #1 trading partner would likely accelerate the USD\/JPY\u2019s present downturn.<\/p>\n

Technically speaking, we have little reason to be positive on the USD\/JPY trend-wise.\u00a0 The currency pair continues to travel south from all of our note-worthy uptrend lines.\u00a0 The only technicals working in the USD\/JPY\u2019s favor right now are intraday and January 2009 lows.\u00a0 However, we did previously note that the 88.50-90 level should prove to be a reliable supportive trading range.\u00a0 Therefore, we wouldn\u2019t be surprised to see the USD\/JPY hang in this area over the next 24-48 hours.\u00a0 On the other hand, traders should remain on their toes since the FX markets are very dynamic right now.\u00a0 We\u2019ve seen an equally negative deterioration in the GBP\/USD, which is positively correlated with the USD\/JPY.\u00a0 The question becomes whether U.S. equities and gold can keep their head above water.\u00a0 As for the topside, the USD\/JPY faces numerous downtrend lines along with the highly psychological 90 level.\u00a0 Therefore, the USD\/JPY has quite a few large obstacles to overcome to the topside.<\/p>\n

Present Price: 89.39<\/p>\n

Resistances:\u00a0 89.42, 89.80, 90.03, 90.32, 90.73, 90.96<\/p>\n

Supports:\u00a0 89.15, 88.89, 88.60, 88.25, 87.80<\/p>\n

Psychological: 90, 2009 and 2008 lows<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/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\u2019s long-term downtrend kicked in much quicker than we anticipated.\u00a0 The psychological 90 level didn\u2019t put up much of a fight, certainly a negative technical sign.\u00a0 Investors continued to snatch up the Yen after the BoJ confirmed that it may be less inclined to intervene in FX markets than the … <\/p>\n

Continue reading “USD\/JPY Recovers After Heading Towards January Lows”<\/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-4043","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4043","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=4043"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4043\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}