{"id":5802,"date":"2010-01-12T12:20:45","date_gmt":"2010-01-12T17:20:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5802"},"modified":"2010-01-12T12:20:45","modified_gmt":"2010-01-12T17:20:45","slug":"usdjpy-drops-through-previous-january-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/12\/usdjpy-drops-through-previous-january-lows\/","title":{"rendered":"USD\/JPY Drops Through Previous January Lows"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is dropping like a rock today in a delayed response to the recent return to the risk trade we mentioned in yesterday\u2019s commentary.\u00a0 After printing strong Trade Balance data, China announced its second measure this week to tighten liquidity by increasing its rate of required reserves by 50 basis points.\u00a0 China\u2019s effort to curtail its economic growth tells us its economy may be speeding ahead faster than anticipated, a positive sign in regards to Japan and developing nations as a whole.\u00a0 However, China\u2019s more hawkish approach monetarily could curtail global growth in the medium-term should China up its measures over time.\u00a0 Meanwhile, Japan Airlines tumbled 45% during the Asia trading session after it became clear the company would have to file for bankruptcy.\u00a0 Japan Airline\u2019s pending bankruptcy could be a driving force behind a stronger Yen, though this seems counterintuitive.\u00a0 That being said, investors should keep an eye on broad based activity in the Dollar since today\u2019s pullback in the USD\/JPY could be foreboding of a pop in the EUR\/USD and Cable.\u00a0 Investors are anticipating tomorrow\u2019s Core Machinery Orders data along with the release of the Fed\u2019s Beige Book.\u00a0 However, focus remains primarily on Thursday\u2019s U.S. Retail Sales data since a recovery in U.S. consumption bodes well for Japanese manufacturers and exporters.<\/p>\n

Technically speaking, the USD\/JPY\u2019s has sunk beneath previous our 4th tier uptrend line and previous January lows, a negative development trend-wise.\u00a0 The next test will be our 3rd tier uptrend line and 12\/24 lows.\u00a0 Should these cushions give way the USD\/JPY\u2019s downward momentum could accelerate towards the highly psychological 90 trading range.\u00a0 As for the topside, the USD\/JPY faces multiple downtrend lines along with 1\/06, 1\/04, and 1\/08 highs.<\/p>\n

Present Price: 91.13<\/p>\n

Resistances: 91.22, 91.45, 91.61, 91.88, 92.13, 92.30<\/p>\n

Supports: 90.96, 90.80, 90.54, 90.24, 90.05, 89.90<\/p>\n

Psychological: 95, 90, January highs<\/p>\n

(click to enlarge)<\/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 dropping like a rock today in a delayed response to the recent return to the risk trade we mentioned in yesterday\u2019s commentary.\u00a0 After printing strong Trade Balance data, China announced its second measure this week to tighten liquidity by increasing its rate of required reserves by 50 basis … <\/p>\n

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