{"id":5659,"date":"2010-01-05T11:41:51","date_gmt":"2010-01-05T16:41:51","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5659"},"modified":"2010-01-05T11:41:51","modified_gmt":"2010-01-05T16:41:51","slug":"usdjpy-drops-on-overbought-conditions","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/05\/usdjpy-drops-on-overbought-conditions\/","title":{"rendered":"USD\/JPY Drops on Overbought Conditions"},"content":{"rendered":"

By Fast Brokers <\/strong>– The USD\/JPY is tacking onto yesterday\u2019s downward momentum despite broad-based strength in the Dollar along with weakness in gold.\u00a0 Hence, it seems the USD\/JPY may be declining in the face of overbought conditions following December\u2019s impressive rally.\u00a0 On the other hand, strength in both the Dollar and the Yen could be a sign of investors heading for safety.\u00a0 Regardless, the USD\/JPY is still trading well above 12\/24 lows and the psychological 90 level.\u00a0 Therefore, the USD\/JPY\u2019s uptrend is intact for the time being.\u00a0 However, the FX markets should start to shake up tomorrow with the release of Services PMI data from the UK along with the much anticipated U.S. Non-Farm Employment Change number.\u00a0 A turnaround in U.S. unemployment triggered the Dollar\u2019s December rally.\u00a0 Therefore, it will be interesting to see how the USD\/JPY reacts to tomorrow\u2019s key employment figure should it print above or below analyst expectations.\u00a0 Japan will be quiet in the data-wire this week, likely leaving the USD\/JPY\u2019s movements in the hands of the West.<\/p>\n

Technically speaking, the USD\/JPY overcame some notable topside barriers during the month of December, most notably the psychological 90 level and a few heavily-weighted downtrend lines.\u00a0 Speaking of downtrend lines, our 2nd tier downtrend line could prove to be a key barrier since it runs through August \u201909 highs.\u00a0 Hence, an eclipse of our 2nd tier could potentially yield a medium-term run towards the 97.50 area.\u00a0 Meanwhile, the USD\/JPY faces multiple downtrend lines along with September highs and the psychological 95 zone.\u00a0 As for the downside, the USD\/JPY has multiple uptrend lines serving as technical cushions along with 12\/24 and 12\/21 lows.\u00a0 Furthermore, the psychological 90 area could serve as a suitable cushion should it be tested.<\/p>\n

Present Price: 91.55<\/p>\n

Resistances: 91.83, 92.03, 92.26, 92.46, 92.76, 92.96<\/p>\n

Supports: 91.46, 91.28, 91.11, 90.94, 90.78, 90.46<\/p>\n

Psychological: 95, 90, January and September Highs<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> 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> 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 tacking onto yesterday\u2019s downward momentum despite broad-based strength in the Dollar along with weakness in gold.\u00a0 Hence, it seems the USD\/JPY may be declining in the face of overbought conditions following December\u2019s impressive rally.\u00a0 On the other hand, strength in both the Dollar and the Yen could be … <\/p>\n

Continue reading “USD\/JPY Drops on Overbought Conditions”<\/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-5659","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5659","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=5659"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5659\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}