{"id":6228,"date":"2010-01-26T09:49:29","date_gmt":"2010-01-26T14:49:29","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6228"},"modified":"2010-01-26T09:49:29","modified_gmt":"2010-01-26T14:49:29","slug":"usdjpy-tumbles-with-flow-of-negative-news","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/26\/usdjpy-tumbles-with-flow-of-negative-news\/","title":{"rendered":"USD\/JPY Tumbles with Flow of Negative News"},"content":{"rendered":"

By Fast Brokers <\/strong>– The USD\/JPY has tumbled back below the psychological 90 level and previous January lows in a flood of negative developments in both the East and the West.\u00a0 During the Asia trading session investors headed for safety after China\u2019s major banks indicated they are taking the central banks\u2019 new hawkish monetary stance seriously, benefitting the Yen in the process.\u00a0 Additionally, the BoJ kept its monetary policy unchanged despite external pressure from Finance Minister Kan in regards to fighting deflationary forces.\u00a0 Therefore, it seems the BoJ is not comfortable with intervening at present levels, especially considering the S&P just lowered Japan\u2019s credit rating outlook.\u00a0 The S&P\u2019s downgrade has delivered another blow to investor confidence and the Yen is benefitting as investors exit the risk trade.\u00a0 Moving to the West, the UK printed a Prelim GDP figure below analyst expectations.\u00a0 The negative GDP number led to a wave of risk aversion, a negative development for the USD\/JPY.\u00a0 Attention now shifts to the U.S. with the release of CB Consumer Confidence and it will be interesting to see how FX markets react since yesterday\u2019s disappointing Existing Home Sales number led to broad-based weakness in the Greenback.\u00a0 Japan will print its Trade Balance during tomorrow\u2019s Asia trading session.\u00a0 Should the Trade Balance yield a stronger than expected surplus this could result in another round of Yen purchases.\u00a0 Meanwhile, volatility should remain at a heightened state for the next couple trading sessions since the U.S. will release New Home Sales tomorrow followed by the Fed\u2019s monetary policy decision.<\/p>\n

Technically speaking, the USD\/JPY has our 1st and 2nd tier uptrend lines serving as technical cushions along with 12\/18 and 12\/14 lows.\u00a0 As for the topside, the USD\/JPY faces multiple downtrend lines along with intraday and 12\/18 highs.\u00a0 Furthermore, the psychological 90 level may work against the USD\/JPY\u2019s favor should conditions deteriorate further.<\/p>\n

Present Price: 89.47<\/p>\n

Resistances: 89.69, 89.97, 90.14, 90.37, 90.64, 90.77<\/p>\n

Supports: 89.40, 89.21, 89.02, 88.85, 88.62, 88.28<\/p>\n

Psychological: 90, December highs and lows<\/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 has tumbled back below the psychological 90 level and previous January lows in a flood of negative developments in both the East and the West.\u00a0 During the Asia trading session investors headed for safety after China\u2019s major banks indicated they are taking the central banks\u2019 new hawkish monetary stance … <\/p>\n

Continue reading “USD\/JPY Tumbles with Flow of Negative News”<\/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-6228","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6228","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=6228"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6228\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}