{"id":5160,"date":"2009-12-08T12:36:04","date_gmt":"2009-12-08T17:36:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5160"},"modified":"2009-12-08T12:36:04","modified_gmt":"2009-12-08T17:36:04","slug":"usdjpy-trades-lower-with-risk-aversion","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/08\/usdjpy-trades-lower-with-risk-aversion\/","title":{"rendered":"USD\/JPY Trades Lower with Risk Aversion"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is continuing Monday\u2019s selloff as investors opt for risk aversion following disconcerting comments from both Bernanke and Moody\u2019s.\u00a0 Yesterday Bernanke stated that the U.S. economy still faces considerable headwinds.\u00a0 It seems Bernanke is attempting to dampen investor optimism stemming from Friday\u2019s enouraging U.S. employment data.\u00a0 In addition to Bernanke\u2019s caution statement, Moody\u2019s warned that the U.S. and UK may be testing the patience of their respective Aaa ratings.\u00a0 The fear of U.S. and UK debt exposure has increased investor uncertainty, thereby resulting in risk averse money flows.\u00a0 Hence, the USD\/JPY is being hit by a combination of negative psychological developments from the West.<\/p>\n

Meanwhile, the DPJ announced the implementation of a $81 billion stimulus package to help buoy a beleagured Japanese economy.\u00a0 Although the DPJ\u2019s new stimulus package should give a positive boost to the nation\u2019s economy, analysts are already debating whether the $81 billion is enough to turn deflationary pressures.\u00a0 The Yen initially strengthened in reaction the DPJ\u2019s announcement, highlighting investor skepticism in regards to the effectiveness of the stimulus package in regards to tempering deflation.\u00a0 In addition to the DPJ\u2019s announcement, Japan reported that its Trade Balance widened more than expected, suggesting global demand for Japanese exports continues to recover.<\/p>\n

Technically speaking, the USD\/JPY is trading back below its highly psychological 90 level in addition to multiple downtrend lines hanging overhead.\u00a0 Therefore, the currency pair still has its fair share of topside techncials to deal with before cementing a more formidable uptrend.\u00a0 As for the downside, the USD\/JPY does have a couple new uptrend lines hanging nearby alonng 12\/04 and 12\/03 lows.\u00a0 Hence, while the USD\/JPY does face strong downside pressures, the currency pair has at least gained a little breathing room from October lows and the psychological 85 level.<\/p>\n

Meanwhile, investors are awaiting tonight\u2019s Final GDP figure.\u00a0 If Final GDP prints positive as a result of an increase in export demand, then the USD\/JPY may face further downward pressure as inverstors favor the Yen over the Dollar as a safe haven.<\/p>\n

Present Price: 88.38<\/p>\n

Resistances: 88.62, 88.86, 89.03, 89.12, 89.34, 89.54<\/p>\n

Supports: 88.34, 88.18, 88.01, 87.82, 87.72, 87.49<\/p>\n

Psychological: 90, November Highs and 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 is continuing Monday\u2019s selloff as investors opt for risk aversion following disconcerting comments from both Bernanke and Moody\u2019s.\u00a0 Yesterday Bernanke stated that the U.S. economy still faces considerable headwinds.\u00a0 It seems Bernanke is attempting to dampen investor optimism stemming from Friday\u2019s enouraging U.S. employment data.\u00a0 In addition to Bernanke\u2019s … <\/p>\n

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