{"id":4260,"date":"2009-10-13T10:45:39","date_gmt":"2009-10-13T15:45:39","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4260"},"modified":"2009-10-13T10:45:39","modified_gmt":"2009-10-13T15:45:39","slug":"usdjpy-edges-lower-after-encountering-90-and-our-2nd-tier","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/13\/usdjpy-edges-lower-after-encountering-90-and-our-2nd-tier\/","title":{"rendered":"USD\/JPY Edges Lower After Encountering 90 and our 2nd Tier"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is drifting back beneath the highly psychological 90 level after being deflected by our 2nd tier downtrend line.\u00a0 We cautioned investors not to become overly optimistic concerning Friday\u2019s rally due to the strength of these two technical barriers.\u00a0 Friday\u2019s bounce was based off of broad-based oversold conditions for the Dollar and weaker than expected Core Machinery Orders data.\u00a0 The light data gave investors a reason to unload some Yen and value the USD\/JPY based on comparative economic fundamentals rather than policy uncertainties and broad Dollar trends.\u00a0 However, the USD\/JPY\u2019s long-term downtrend is clearly in the driver\u2019s seat, and we will need much more convincing topside movements to alter out outlook.\u00a0 The USD\/JPY should continue to participate with incessant deflation of the Greenback.<\/p>\n

Meanwhile, all eyes will be on BoJ tonight EST since the central bank will be announcing its first monetary policy decision under the leadership of Minister Fujii.\u00a0 There has been much uncertainty and speculation swirling around Fujii\u2019s monetary stance and the impact of the DPJ\u2019s fiscal policy on the Yen.\u00a0 Although Fujii attempted to recant his indifference towards a stronger Yen, we have little reason to believe the BoJ will intervene unless the Yen were to appreciate to uncomfortable levels is a short period of time.\u00a0 What these levels are naturally remain to be seen, though we believe a failure of 2009 lows would raise a red flag.\u00a0 Even though investors are anticipating that the BoJ will announce the official expiration of its corporate bond purchase program by the end of the year, the more important element of the meeting will be any reference regarding the BoJ\u2019s attitude towards a stronger Yen.\u00a0 Further indifference and uncertainty from Minister Fujii could deliver another psychological blow to a beleaguered USD\/JPY.<\/p>\n

In addition to tonight\u2019s BoJ meeting, investors will be digesting the flood of Q3 earnings and key U.S. econ data, including Retail Sales and Core CPI.\u00a0 Outperformance of earnings and econ data would likely result in further equity strength combined with Dollar weakness.\u00a0 The USD\/JPY\u2019s trend is very much attuned to investor opinion regarding the overall health of the Dollar.\u00a0 Therefore, we expect current correlations and trends to remain intact until further notice.\u00a0 Technically speaking, our multiple downtrend lines and the highly psychological 90 zone should continue to serve as noteworthy topside barriers along with 10\/12 and 9\/24 highs.\u00a0 As for the downside, our two uptrend lines serve as key technical cushions along with previous October lows.<\/p>\n

Present Price: 89.66<\/p>\n

Resistances: 89.68, 89.82, 89.97, 90.21, 90.43, 90.63<\/p>\n

Supports:\u00a0 89.45, 89.16, 88.97, 88.78, 88.63, 88.41<\/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 drifting back beneath the highly psychological 90 level after being deflected by our 2nd tier downtrend line.\u00a0 We cautioned investors not to become overly optimistic concerning Friday\u2019s rally due to the strength of these two technical barriers.\u00a0 Friday\u2019s bounce was based off of broad-based oversold conditions for the … <\/p>\n

Continue reading “USD\/JPY Edges Lower After Encountering 90 and our 2nd Tier”<\/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-4260","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4260","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=4260"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4260\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}