{"id":4320,"date":"2009-10-16T12:41:36","date_gmt":"2009-10-16T17:41:36","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4320"},"modified":"2009-10-16T12:41:36","modified_gmt":"2009-10-16T17:41:36","slug":"usdjpy-buckles-following-solid-run","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/16\/usdjpy-buckles-following-solid-run\/","title":{"rendered":"USD\/JPY Buckles Following Solid Run"},"content":{"rendered":"

By Fast Brokers <\/strong>– The USD\/JPY is experiencing profit taking today after flying with U.S. equities and the Cable yesterday.\u00a0 The USD\/JPY ignored the theme of a weaker Dollar, and instead opted to participate in the risk trade.\u00a0 Thursday\u2019s combination of positive Q3 earnings and a drop in weekly U.S. Unemployment Claims gave investors confidence to put their money back into riskier investment vehicles while sending the S&P futures towards 1100.\u00a0 An improvement in U.S. unemployment implies an increase in consumption, thereby increasing demand for Japanese exports.\u00a0 However, Thursday\u2019s risk trade is being undermined today by disappointing earnings from BofA and GE along with weaker than expected Prelim UoM Consumer Sentiment data.\u00a0 The USD\/JPY\u2019s rally has topped out at what is now our 1st tier downtrend line after shying away from a test of 9\/23 highs.\u00a0 The currency pair still faces multiple downtrend lines along with 9\/23 and 9\/25 highs.\u00a0 Therefore, quite a few technical barriers remain before the USD\/JPY can establish a more substantial uptrend.<\/p>\n

On a positive note, the USD\/JPY is trading comfortably above 90 and the psychological level may now work in the currency pair\u2019s favor.\u00a0 Furthermore, the USD\/JPY has set higher lows (10\/7 and 10\/14) while receiving encouraging buy-side volume during yesterday\u2019s session.\u00a0 The USD\/JPY has created a little more breathing room in the form of multiple uptrend lines after dangling over the edge only a week ago.\u00a0 Despite the improvements in the USD\/JPY\u2019s support system, the currency pair still has a lot to prove before to the topside due to the extent of its downturn.\u00a0 Our 2nd tier downtrend line would be a good place to start since it could extend the USD\/JPY\u2019s rally towards 93.<\/p>\n

Meanwhile, the BoJ will kick off the week by releasing its monetary policy meeting minutes combined with tertiary industry activity data early Monday (late Sunday EST).\u00a0 Investors will also receive public addresses from Fed Chairman Bernanke and BoE Governor King along with key China data on Wednesday.\u00a0 Therefore, volatility should remain at a heightened level through next week while investors continue to digest Q3 results.<\/p>\n

Present Price: 90.70<\/p>\n

Resistances: 90.99, 91.27, 91.44, 91.62, 91.85, 92.17<\/p>\n

Supports:\u00a0 90.70, 90.40, 90.15, 89.94, 89.69, 89.37<\/p>\n

Psychological: 90<\/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 experiencing profit taking today after flying with U.S. equities and the Cable yesterday.\u00a0 The USD\/JPY ignored the theme of a weaker Dollar, and instead opted to participate in the risk trade.\u00a0 Thursday\u2019s combination of positive Q3 earnings and a drop in weekly U.S. Unemployment Claims gave investors confidence … <\/p>\n

Continue reading “USD\/JPY Buckles Following Solid Run”<\/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-4320","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4320","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=4320"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4320\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}