{"id":6296,"date":"2010-01-27T11:03:57","date_gmt":"2010-01-27T16:03:57","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6296"},"modified":"2010-01-27T11:03:57","modified_gmt":"2010-01-27T16:03:57","slug":"usdjpy-drifts-lower-as-risk-aversion-persists","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/27\/usdjpy-drifts-lower-as-risk-aversion-persists\/","title":{"rendered":"USD\/JPY Drifts Lower as Risk Aversion Persists"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is drifting lower today as the Dollar strengthens against the Pound and Euro, a sign the trend of risk aversion is still in place.\u00a0 Chinese equities declined again today as investors digest a tighter monetary policy from the central bank.\u00a0 Although the positive U.S. CB Realized Sales number aided the risk trade yesterday, the optimism wasn\u2019t lasting and investors are opting to focus on today\u2019s U.S. New Home Sales followed by the Fed\u2019s monetary policy decision.\u00a0 Furthermore, Obama will deliver his State of the Union tonight and he is expected to address his budget proposals for the coming year.\u00a0 That being said, the Dollar should remain active for the next 24-48 hours, particularly with Durable Goods Orders on the way tomorrow.\u00a0 Thursday\u2019s CDO data could have a noticeable impact on the USD\/JPY since Japan is reliant upon a recovery in U.S. consumption to help buoy Japanese manufacturers and exporters.\u00a0 Negative CDO data could drag the USD\/JPY lower to somewhat uncomfortable levels.\u00a0 That being said, if the USD\/JPY\u2019s decline persists it will be interesting to see how long the BoJ will sit on the sidelines before taking a more vocal approach towards weakening the Yen.\u00a0 Although the BoJ reiterated its intent to fight deflationary pressures yesterday, the statement wasn\u2019t aggressive enough to warrant a pop in the USD\/JPY.\u00a0 Japan will release Retail Sales during Thursday\u2019s Asia trading session followed by CPI, Household Spending, and Prelim Industrial Production on Friday.\u00a0 Hence, activity could heat up in the USD\/JPY as the week wears on.\u00a0 Japan\u2019s Trade Balance printed weaker than expected today, meaning Friday\u2019s data set could come in mixed.<\/p>\n

Technically speaking, the USD\/JPY has multiple 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 should conditions deteriorate further.<\/p>\n

Present Price: 89.38<\/p>\n

Resistances: 89.39, 89.60, 89.71, 89.95, 90.14, 90.39<\/p>\n

Supports: 89.21, 89.02, 88.85, 88.62, 88.45, 88.28<\/p>\n

Psychological: 90, December highs and lows<\/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 drifting lower today as the Dollar strengthens against the Pound and Euro, a sign the trend of risk aversion is still in place.\u00a0 Chinese equities declined again today as investors digest a tighter monetary policy from the central bank.\u00a0 Although the positive U.S. CB Realized Sales number aided … <\/p>\n

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