{"id":5196,"date":"2009-12-09T12:56:30","date_gmt":"2009-12-09T17:56:30","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5196"},"modified":"2009-12-09T12:56:30","modified_gmt":"2009-12-09T17:56:30","slug":"usdjpy-weakens-in-reaction-to-disappointing-gdp-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/09\/usdjpy-weakens-in-reaction-to-disappointing-gdp-data\/","title":{"rendered":"USD\/JPY Weakens in Reaction to Disappointing GDP Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – Yesterday, 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

However, the USD\/JPY took a hit today after Japan\u2019s Final GDP printed 5 basis points below analyst expectations (0.3% vs 0.8% expected).\u00a0 Japan\u2019s disappointing GDP data has increased investor uncertainty in regards to the health of the global economy.\u00a0 Asian markets logged losses on the news and the USD\/JPY sank back below 12\/04 lows.\u00a0 Today\u2019s discouraging Final GDP figure shows us why the DPJ was so eager to announce its stimulus package while leaning on the BoJ to increase liquidity.<\/p>\n

Meanwhile, the USD\/JPY is also being dragged down by risk-averse flows in the FX market as a whole.\u00a0 Investors are snapping up the Dollar and the Yen after S&P downgraded its credit outlook on Spain amidst debt problems in Dubai and Greece.\u00a0 Investors will now be looking forward to tomorrow\u2019s BoE meeting followed by weekly Unemployment Claims and Trade Balance Data from the U.S.\u00a0 Furthermore, Yen investors will be focusing on Australia\u2019s key employment data releases during Thursday\u2019s Asia trading session and China\u2019s Industrial Production figure the following morning.\u00a0 Japan is reliant on export demand from China and Australia, meaning positive data flows over the next 24-48 hours could help allay concerns about the state of Japan\u2019s economy.<\/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 technicals to deal with before creating a more solid uptrend.\u00a0 That being said, longer-term downtrend forces remain.\u00a0 As for the downside, the USD\/JPY is presently testing the patience of our 3rd and 4th tier uptrend lines along.\u00a0 However, the USD\/JPY does have additional technical cushions waiting nearby in the form of 11\/25 and 12\/01 lows.\u00a0 Should conditions deteriorate further, the USD\/JPY has our 1st and 2nd tier uptrend lines serving as supports along with November lows and the psychological 85 level.<\/p>\n

Present Price: 87.84<\/p>\n

Resistances: 88.07, 88.33, 88.48, 88.67, 88.86, 89.12<\/p>\n

Supports: 87.82, 87.66, 87.49, 87.32, 87.11, 86.92<\/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 – Yesterday, 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 … <\/p>\n

Continue reading “USD\/JPY Weakens in Reaction to Disappointing GDP Data”<\/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-5196","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5196","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=5196"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5196\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}