{"id":6970,"date":"2010-02-19T11:05:33","date_gmt":"2010-02-19T16:05:33","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6970"},"modified":"2010-02-19T11:05:33","modified_gmt":"2010-02-19T16:05:33","slug":"usdjpy-rallies-on-fed-news","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/19\/usdjpy-rallies-on-fed-news\/","title":{"rendered":"USD\/JPY Rallies on Fed News"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY popped higher amid a broad-based Dollar rally in reaction to the Fed\u2019s surprise decision to raise the rate at the discount window by 25 basis points.\u00a0 The Fed\u2019s announcement signals that the emergency window may be shutting.\u00a0 Though a small movement, investors are taking it as the first step in the process of soaking up loose liquidity.\u00a0 Such mentality has led investors to buy up the USD\/JPY since the BoJ remains concerned about deflationary pressures in Japan.\u00a0 Hence, it is becoming apparent that the Fed may tighten before the BoJ, making the Dollar a solid buy over the Yen.\u00a0 However, although U.S. manufacturing is picking up, unemployment is still a big problem and today\u2019s data shows that this week\u2019s rise in PPI didn\u2019t translate into higher consumer prices.\u00a0 Hence, the Fed is likely to bring along its exit strategy slowly, tempering excitement in the USD\/JPY.\u00a0 Japan will kick off next week with the release of the BoJ\u2019s monetary policy minutes.\u00a0 Investors will be digging into the central bank\u2019s outlook on Japan\u2019s economy and inflation.\u00a0 However, the ball will likely remain in America\u2019s court with consumer confidence data due Monday while investors remain concerned about debt issues in the EU.<\/p>\n

Technically speaking, the USD\/JPY has multiple downtrend lines serving as technical barriers along with intraday highs.\u00a0 Our 3rd tier downtrend line serves as a key barrier since it runs through January highs.\u00a0 Hence, an eclipse of our 3rd tier could signal a continuation in the rally towards the 93 area.\u00a0 As for the downside, the USD\/JPY has multiple uptrend lines serving as technical cushions along with intraday lows.\u00a0 Furthermore, the highly psychological 90 level becomes a technical cushion should it be retested.<\/p>\n

Present Price: 91.76<\/p>\n

Resistances: 91.81, 91.89, 92.03, 92.15, 91.25, 92.35<\/p>\n

Supports: 91.66, 91.54, 91.41, 91.31, 91.22, 91.12<\/p>\n

Psychological: 90, February 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 popped higher amid a broad-based Dollar rally in reaction to the Fed\u2019s surprise decision to raise the rate at the discount window by 25 basis points.\u00a0 The Fed\u2019s announcement signals that the emergency window may be shutting.\u00a0 Though a small movement, investors are taking it as the first step … <\/p>\n

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