{"id":7016,"date":"2010-02-22T11:47:34","date_gmt":"2010-02-22T16:47:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7016"},"modified":"2010-02-22T11:47:34","modified_gmt":"2010-02-22T16:47:34","slug":"usdjpy-slides-despite-calls-to-fight-deflation","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/22\/usdjpy-slides-despite-calls-to-fight-deflation\/","title":{"rendered":"USD\/JPY Slides Despite Calls to Fight Deflation"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is sinking from Friday\u2019s highs despite calls from Prime Minister Hatoyama and Finance Minister Kan for the BoJ to do what is necessary to fight deflationary pressures.\u00a0 However, the BoJ seems to be doing what it can to avoid more bond purchases in order to restore investor confidence in Japan\u2019s economy.\u00a0 After all, the BoJ wants to do what it can to avoid speculation that Japan will fall into another lost decade.\u00a0 The USD\/JPY\u2019s current decline shows that investors may not be giving much weight to comments from Hatoyama and Kan.\u00a0 For if investors thought the BoJ would be proactive in fighting deflationary pressures, the USD\/JPY would likely rise in preparation from a looser monetary policy from the BoJ.\u00a0 On the other hand, this may just be a healthy dip in the USD\/JPY after last week\u2019s solid rally resulting from a broad-based exit from the risk trade.\u00a0 Meanwhile, the FX market is cooling altogether due to the lack of news and data.\u00a0 However, activity could pick up tomorrow due to key economic releases from the EU and U.S.\u00a0 Additionally, it will be interesting to see how intent the BoJ is in battling deflation when tomorrow\u2019s monetary meeting minutes are released.\u00a0 Meanwhile, investors should monitor the USD\/JPY\u2019s ability to stay above our uptrend lines and avoid a retest of the highly psychological 90 level.<\/p>\n

Technically speaking, the USD\/JPY has multiple downtrend lines serving as technical barriers along with intraday and 2\/19 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 and 2\/18 lows.\u00a0 Furthermore, the highly psychological 90 level becomes a technical cushion should it be retested.\u00a0 That being said, the longer the USD\/JPY holds above 90 the strong the currency pair\u2019s uptrend becomes due to the level\u2019s psychological relevance in the past.<\/p>\n

Present Price: 91.32<\/p>\n

Resistances: 91.45, 91.56, 91.70, 91.82, 91.93, 92.07<\/p>\n

Supports: 91.28, 91.17, 91.06, 90.97, 90.88, 90.77<\/p>\n

Psychological: 90, February highs<\/p>\n

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

(click to enlarge)<\/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 sinking from Friday\u2019s highs despite calls from Prime Minister Hatoyama and Finance Minister Kan for the BoJ to do what is necessary to fight deflationary pressures.\u00a0 However, the BoJ seems to be doing what it can to avoid more bond purchases in order to restore investor confidence in … <\/p>\n

Continue reading “USD\/JPY Slides Despite Calls to Fight Deflation”<\/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-7016","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7016","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=7016"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7016\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}