{"id":4076,"date":"2009-09-30T09:37:42","date_gmt":"2009-09-30T14:37:42","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4076"},"modified":"2009-09-30T09:37:42","modified_gmt":"2009-09-30T14:37:42","slug":"usdjpy-heads-back-below-90","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/30\/usdjpy-heads-back-below-90\/","title":{"rendered":"USD\/JPY Heads Back Below 90"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is heading south again after failing to break our 2nd tier uptrend line.\u00a0 The psychological games continue at central banks across the globe, and the BoJ is no exception.\u00a0 The BoJ revised their previous hawkish statements by saying they would consider intervening if the Yen appreciated to unhealthy level.\u00a0 However, what exactly these levels are remains to be seen.\u00a0 We believe the BoJ\u2019s most recent statement was made with the intention to appease manufacturers and exporters when the true intention is likely to have a stronger Yen over the long term.\u00a0 Strength in the USD\/JPY from the BoJ\u2019s comments didn\u2019t last long.\u00a0 Today Bloomberg released an article stating \u2018The Bank of Japan may decide as soon as next month to let its emergency corporate-debt buying programs expire\u2026\u2019\u00a0 If this is true, the BoJ is clearly favoring a hawkish monetary policy.\u00a0 The USD\/JPY is weakening below 90 once again in reaction to the news.<\/p>\n

In addition to the flood of psychological monetary news, America\u2019s CB Consumer Confidence number came in below analyst expectations yesterday.\u00a0 This weak CB number tags onto the disappointing durable goods data last Friday, indicating U.S. consumption continues to drag.\u00a0 The continual deterioration of U.S. consumption isn\u2019t good news for a beleaguered Japanese manufacturing industry.\u00a0 In addition to the disappointing U.S. data, Japan\u2019s Industrial Production and CPI numbers both came in a basis point below analyst expectations.\u00a0 The combination of declining prices and industrial production coupled with a more hawkish monetary stance from the BoJ is certainly a troublesome development for Japan\u2019s economy.\u00a0 Therefore, all eyes will be on Japan\u2019s TMI data Wednesday night PST.\u00a0 It\u2019s hard to believe Japan\u2019s TMI will come in positively considering the state of global consumption, but we will have to wait and see.<\/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 The question becomes whether U.S. equities and gold can keep upward momentum intact.\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: 89.78<\/p>\n

Resistances: 89.80, 90.03, 90.45, 90.73, 90.96, 91.32<\/p>\n

Supports:\u00a0 89.42, 89.15, 88.89, 88.60, 88.25, 87.97<\/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 is heading south again after failing to break our 2nd tier uptrend line.\u00a0 The psychological games continue at central banks across the globe, and the BoJ is no exception.\u00a0 The BoJ revised their previous hawkish statements by saying they would consider intervening if the Yen appreciated to unhealthy level.\u00a0 … <\/p>\n

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