{"id":4568,"date":"2009-11-04T10:31:50","date_gmt":"2009-11-04T15:31:50","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4568"},"modified":"2009-11-04T10:31:50","modified_gmt":"2009-11-04T15:31:50","slug":"usdjpy-edges-above-90-on-flow-to-risk-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/04\/usdjpy-edges-above-90-on-flow-to-risk-trade\/","title":{"rendered":"USD\/JPY Edges above 90 on Flow to Risk Trade"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY has popped back above its psychological 90 level in reaction to solid gains in both the EUR\/USD and GBP\/USD.\u00a0 Hence, the USD\/JPY\u2019s recent behavior stems from a slight return to risk, supported by the S&P\u2019s rally to 1050 and Crude\u2019s climb back to $80\/bbl.\u00a0 However, despite today\u2019s recovery in the risk trade, upcoming central bank meetings could move the markets either way.\u00a0 The Fed, BoE, and ECB will all announce their monetary policy decisions in the next 24 hours, meaning the FX market could experience heightened volatility due to uncertainty surrounding the events.\u00a0 Although investors are expecting the Fed to stay pat, the BoE and ECB decisions could be wildcards should the central banks decide to diverge from their respective stances.\u00a0 Since Japan doesn\u2019t have any events on the board besides tonight\u2019s release of the BoJ meeting minutes, the USD\/JPY\u2019s movements will likely be linked to broad based activity in the Dollar and U.S. equities.\u00a0 Because the USD\/JPY is moving in correlation with the risk trade today, the currency pair may exert a positive correlation with the EUR\/USD, GBP\/USD, and U.S. equities for the time being.\u00a0 Considering the Dollar is at a crossroads, investors should keep a sharp eye on upcoming activity in reaction to monetary policy decisions.<\/p>\n

Technically speaking, the USD\/JPY has created a little breathing room by getting back above 90 along with our 1st and 2nd tier uptrend lines.\u00a0 Furthermore, should another downturn take hold, the currency pair has November and October lows to fall back on.\u00a0 However, the last pop in volume came on Friday\u2019s large pullback, meaning near-term momentum may be in favor of the downside.\u00a0 As for the topside, the USD\/JPY potentially faces multiple uptrend lines along with 10\/30 and 10\/27 highs.\u00a0 Investors should keep in mind that there is still a debilitating, long-term downtrend at work, meaning the road to the topside may be filled with speed bumps.<\/p>\n

Present Price: 90.76<\/p>\n

Resistances: 90.78, 90.93, 91.08, 91.26, 91.44, 91.61<\/p>\n

Supports:\u00a0 90.60, 90.41, 90.29, 90.16, 89.91, 89.77<\/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 – The USD\/JPY has popped back above its psychological 90 level in reaction to solid gains in both the EUR\/USD and GBP\/USD.\u00a0 Hence, the USD\/JPY\u2019s recent behavior stems from a slight return to risk, supported by the S&P\u2019s rally to 1050 and Crude\u2019s climb back to $80\/bbl.\u00a0 However, despite today\u2019s recovery in … <\/p>\n

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