{"id":4930,"date":"2009-11-20T12:39:38","date_gmt":"2009-11-20T17:39:38","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4930"},"modified":"2009-11-20T12:39:38","modified_gmt":"2009-11-20T17:39:38","slug":"usdjpy-glides-lower-amid-weakness-in-u-s-equities","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/20\/usdjpy-glides-lower-amid-weakness-in-u-s-equities\/","title":{"rendered":"USD\/JPY Glides Lower Amid Weakness in U.S. Equities"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY hovered below our 1st tier uptrend line earlier today as we witness a broad-based selloff in riskier investment vehicles.\u00a0 Investors have indicated a preference for the Yen over the Dollar when heading for safety, meaning the USD\/JPY could experience a positive correlation with U.S. equities should present weaknesses accelerate.\u00a0 However, today\u2019s losses in the USD\/JPY have been mitigated, and the currency pair is back above our 1st tier uptrend line as the S&P futures try to stick close to their psychological 1100 level.\u00a0 That being said, investors may want to keep an eye on the S&P\u2019s interaction with 1100 since any significant technical setbacks have the potential to yield further losses in the USD\/JPY.<\/p>\n

Meanwhile, the BoJ kept its benchmark rate unchanged at 0.1% and raised its outlook for future economic performance.\u00a0 Therefore, it seems the BoJ is comfortable with its present monetary policy.\u00a0 However, the DPJ voiced its concern about deflationary pressures in Japan\u2019s economy, placing a bit more pressure on the BoJ to retain its dovish monetary policy.\u00a0 Therefore, it will be interesting to see how the central bank reacts should the USD\/JPY test its October lows.\u00a0 Investors should also keep in mind that Japan\u2019s Prelim GDP printed at 4.8% at the beginning of the week, 5 basis points above analyst expectations.\u00a0 Any further positive econ data from Japan combined with weakness in U.S. equities could drag the USD\/JPY lower as investors select the Yen as a safe haven asset.<\/p>\n

Technically speaking, the USD\/JPY is presently fighting to stay above our 1st uptrend line and the 89 level.\u00a0 Should our 1st tier give way, the currency pair still has 10\/2 lows along with October lows serving as technical cushions.\u00a0 As for the topside, the USD\/JPY faces multiple downtrend lines along with the highly psychological 90 level.\u00a0 Therefore, quite a few topside challenges are in place.\u00a0 Meanwhile, investors should continue to monitor the S&P\u2019s continual interaction with 1100 since any significant technical movements in U.S. equities could have a noticeable impact on the USD\/JPY.<\/p>\n

Present Price: 89.02<\/p>\n

Resistances: 89.15, 89.28, 89.43, 89.57, 89.69, 89.91<\/p>\n

Supports: 88.96, 88.85, 88.73, 88.58, 88.44, 88.30, 88.19<\/p>\n

Psychological: 90 and October Lows<\/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 hovered below our 1st tier uptrend line earlier today as we witness a broad-based selloff in riskier investment vehicles.\u00a0 Investors have indicated a preference for the Yen over the Dollar when heading for safety, meaning the USD\/JPY could experience a positive correlation with U.S. equities should present weaknesses accelerate.\u00a0 … <\/p>\n

Continue reading “USD\/JPY Glides Lower Amid Weakness in U.S. Equities”<\/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-4930","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4930","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=4930"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4930\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}