{"id":7657,"date":"2010-03-17T14:31:18","date_gmt":"2010-03-17T18:31:18","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7657"},"modified":"2010-03-17T14:31:18","modified_gmt":"2010-03-17T18:31:18","slug":"usdjpy-consolidates-despite-risk-trade-breakout","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/17\/usdjpy-consolidates-despite-risk-trade-breakout\/","title":{"rendered":"USD\/JPY Consolidates Despite Risk Trade Breakout"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY has stayed range-bound the past 24 hours despite a broad-based breakout in the risk trade.\u00a0 The Fed maintained its dovish monetary policy, resulting in a pullback in the Dollar across the board.\u00a0 Though the USD\/JPY did pull back a bit, it held firm after a couple retests of the highly psychological 90 level ahead of the BoJ\u2019s own monetary policy meeting.\u00a0 The BoJ opted to double liquidity designated for bank lending in a sign of good faith for the DPJ\u2019s call to fight deflationary pressures.\u00a0 The BoJ\u2019s liquidity injection coupled with the Fed\u2019s consistent dovish stance has resulted in a sideways moving USD\/JPY.\u00a0 Additionally, two members of the BoJ dissented to the central\u2019s bank\u2019s injection, showing all members are not on board for looser liquidity measures in the future.\u00a0 However, should upcoming U.S. economic data outperform the USD\/JPY could head higher again since investors would likely speculate that the Fed will tighten before the BoJ.\u00a0 The U.S. will release CPI, Unemployment Claims, and the Philly Fed Index tomorrow.\u00a0 Therefore, investors should keep a sharp eye on the USD\/JPY\u2019s reaction to tomorrow\u2019s data points.\u00a0 Bernanke will also testify before congress today, which could have the potential to move the Greenback.<\/p>\n

Technically speaking, the USD\/JPY faces multiple downtrend lines along with intraday, 3\/15, and 3\/12 highs.\u00a0 Meanwhile, the highly psychological 90 area could continue to have an influence over the USD\/JPY\u2019s movements for the near-term.\u00a0 As for the downside, the USD\/JPY has multiple uptrend lines serving as technical cushions along with 3\/16 and 3\/9 lows.<\/p>\n

Present Price: 90.40<\/p>\n

Resistances: 90.45, 90.52, 90.58, 90.63, 90.69, 90.75<\/p>\n

Supports: 90.36, 90.29, 90.21, 90.14, 90.08, 90.01<\/p>\n

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

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

(click chart 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 regarded neither 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 stayed range-bound the past 24 hours despite a broad-based breakout in the risk trade.\u00a0 The Fed maintained its dovish monetary policy, resulting in a pullback in the Dollar across the board.\u00a0 Though the USD\/JPY did pull back a bit, it held firm after a couple retests of the … <\/p>\n

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