{"id":4534,"date":"2009-11-02T11:53:19","date_gmt":"2009-11-02T16:53:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4534"},"modified":"2009-11-02T11:53:19","modified_gmt":"2009-11-02T16:53:19","slug":"usdjpy-stabilizes-around-90-following-fridays-pullback","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/02\/usdjpy-stabilizes-around-90-following-fridays-pullback\/","title":{"rendered":"USD\/JPY Stabilizes around 90 Following Friday\u2019s Pullback"},"content":{"rendered":"

By Fast Brokers<\/strong> – Friday\u2019s selloff in the USD\/JPY accelerated on large volume as investors headed divested from riskier investment vehicles in reaction to the large selloff in U.S. equities.\u00a0 Friday\u2019s strength in the Yen also stemmed from the BoJ\u2019s decision to end a couple of its bond purchasing programs in an effort to tighten liquidity.\u00a0 Friday\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, yesterday\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 last 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 will be focused on the flow of important U.S. econ data along with more Q3 earnings reports before Wednesday\u2019s FOMC meeting.\u00a0 Additionally, investors will receive monetary policy decisions from both the ECB and BoE on Thursday.\u00a0 Therefore, we could be in for another volatile trading week since there is an air of uncertainty surrounding the upcoming central bank decisions.\u00a0 For the time being, it seems investors may favor the Yen over the Dollar as a safe haven due to yesterday\u2019s selloff in conjunction with pullbacks in the EUR\/USD, GBP\/USD and AUD\/USD.\u00a0 As a result, the USD\/JPY could be in for further weakness should the S&P futures choose to test their October lows and the psychological 1000 level.\u00a0 However, we\u2019ll also receive a public address from BOJ Governor Shirakawa on Tuesday along with BoJ meeting minutes on Wednesday.\u00a0 Any surprising language coming from either of these events could have a moderate impact on the Yen.<\/p>\n

Techncially speaking, the USD\/JPY dropped through 10\/16 lows and was fairly close to testing 10\/14 lows.\u00a0 Furthermore, the currency pair sank past the highly psychological 90 level along with our 1st tier uptrend line on high volume.\u00a0 As a result, present momentum appears to be in favor of the downside.\u00a0 As for the topside, the USD\/JPY faces multiple downtrend lines along with 10\/30 highs.\u00a0 On a positive note, the currency pair has managed to climb back above 90 this morning to keep its head above water.<\/p>\n

Present Price: 90.11<\/p>\n

Resistances: 91.16, 91.29, 90.41, 90.60, 90.78, 90.93<\/p>\n

Supports:\u00a0 89.91, 89.77, 89.60, 89.38, 89.26, 89.14<\/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 – Friday\u2019s selloff in the USD\/JPY accelerated on large volume as investors headed divested from riskier investment vehicles in reaction to the large selloff in U.S. equities.\u00a0 Friday\u2019s strength in the Yen also stemmed from the BoJ\u2019s decision to end a couple of its bond purchasing programs in an effort to tighten … <\/p>\n

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