{"id":4501,"date":"2009-10-30T11:25:29","date_gmt":"2009-10-30T16:25:29","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4501"},"modified":"2009-10-30T11:25:29","modified_gmt":"2009-10-30T16:25:29","slug":"usdjpy-heads-back-below-91","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/30\/usdjpy-heads-back-below-91\/","title":{"rendered":"USD\/JPY Heads Back Below 91"},"content":{"rendered":"

By Fast Brokers <\/strong>– A selloff is taking place in the riskier FX pairs and the USD\/JPY is following suit, telling us investors prefer the Yen over the Dollar as a safe haven right now.\u00a0 Today\u2019s strength in the Yen also stems from the BoJ\u2019s decision to end a couple of its bond purchasing programs in an effort to tighten liquidity.\u00a0 Today\u2019s monetary policy falls in line with the BoJ\u2019s more conservative stance since the DPJ took office.\u00a0 Furthermore, the BoJ was likely encouraged by the USD\/JPY\u2019s recent solid performance above its important 90 threshold.\u00a0 However, today\u2019s larger than expected decline in both the Tokyo Core CPI and Household Spending tell us the BoJ can\u2019t be too conservative with its monetary policy since deflationary pressures are still bearing down on consumer prices.\u00a0 Additionally, even though this week\u2019s Industrial Production number printed better than analyst expectations, the 1.4% rate of growth is unsubstantial compared to the huge declines we witnessed during late 2008\/early 2009.\u00a0 Hence, Japan\u2019s economy still faces a long path to recovery.<\/p>\n

Meanwhile, investors should keep an eye on the S&P futures and monitor their ability to sustain yesterday\u2019s rally.\u00a0 The USD\/JPY has been behaving in a more consistent, positive correlation with U.S. equities, although it\u2019s uncertain how long this will last.\u00a0 Therefore, investors can also compare the USD\/JPY to the S&P\u2019s stronger correlations, including the EUR\/USD, AUD\/USD, and gold.\u00a0 Japanese markets will be closed on Monday for a banking holiday, meaning the Asia session trading could be light.\u00a0 Techncially speaking, the USD\/JPY\u2019s inability to test 10\/26 highs yesterday was a bit discouraging as far as a near-term uptrend is concerned.\u00a0 However, the currency pair does have a couple more uptrend lines to fall back on along with 10\/20 lows and the psychological 90 level.\u00a0 As for the topside, our 2nd and 3rd tier downtrend lines bear overhead along with 10\/26 and 9\/21 highs.<\/p>\n

Present Price: 90.86<\/p>\n

Resistances: 91.22, 91.32, 91.44, 91.61, 91.78<\/p>\n

Supports:\u00a0 90.83, 90.68, 90.49, 90.34, 90.21<\/p>\n

Psychological: 90<\/p>\n

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

Market Commentary<\/strong><\/em> <\/span>provided by <\/span>Fast Brokers<\/strong><\/span><\/span>.<\/a><\/p>\n

Disclaimer:<\/strong> <\/span>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> <\/span>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 – A selloff is taking place in the riskier FX pairs and the USD\/JPY is following suit, telling us investors prefer the Yen over the Dollar as a safe haven right now.\u00a0 Today\u2019s strength in the Yen also stems from the BoJ\u2019s decision to end a couple of its bond purchasing programs … <\/p>\n

Continue reading “USD\/JPY Heads Back Below 91”<\/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-4501","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4501","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=4501"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4501\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}