{"id":8271,"date":"2010-04-06T14:17:10","date_gmt":"2010-04-06T18:17:10","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8271"},"modified":"2010-04-06T14:17:10","modified_gmt":"2010-04-06T18:17:10","slug":"usdjpy-ducks-with-risk-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/06\/usdjpy-ducks-with-risk-trade\/","title":{"rendered":"USD\/JPY Ducks with Risk Trade"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is ducking back below its psychological 94 level as the risk trade experiences a setback across the board.\u00a0 The concept of a hung parliament in the UK and renewed uncertainty in Greece has dented the risk trade\u2019s recent rally.\u00a0 Greece\u2019s bond prices are dropping again after government officials expressed their disapproval of IMF involvement with any future financial aid packages due to the apparent severity of their proposed austerity measures.\u00a0 The EUR\/USD and Cable have taken a sizable hit today and investors are buying the Yen again in reaction to today\u2019s developments.\u00a0 Meanwhile, a little weakness in the USD\/JPY can also be viewed as a healthy occurrence considering the extent of the currency pair\u2019s recent rally from March lows.\u00a0 The USD\/JPY is still trading well above any meaningful downtrend lines, meaning the currency pair\u2019s new uptrend is intact for the time being.\u00a0 However, the BoJ will make a monetary policy decision tomorrow, and policy meetings normally have the potential to deliver a sizable impact to corresponding currency pairs.\u00a0 Since the USD\/JPY has made such an impressive comeback and is trading well above its highly psychological 90 area, the BoJ may feel comfortable expressing more confidence in Japan\u2019s economic condition.\u00a0 That being said, it seems unlikely the central bank will increase liquidity again.\u00a0 Either way, it will be interesting to see whether tomorrow\u2019s monetary policy statement yields more profit taking in the USD\/JPY.\u00a0 On the other hand, such the BoJ happen to remain very dovish this could benefit the currency pair due to recent waves of positive U.S. economic data.\u00a0 Speaking of the U.S., the FOMC will release its meeting minutes today and investors will be looking to see if the central bank\u2019s outlook has brightened.<\/p>\n

Technically speaking, the USD\/JPY faces technical barriers in the form of previous April highs and the currency pair\u2019s psychological 95 level.\u00a0 As for the downside, the USD\/JPY has multiple uptrend lines serving as technical cushions along with 4\/2, 4\/1, and 3\/30 lows.\u00a0 Additionally, the psychological 93 level could serve as a psychological cushion should it be tested.<\/p>\n

Present Price: 93.83
\nResistances: 94.06, 94.26, 94.40, 94.56, 94.74, 94.89
\nSupports: 93.80, 93.67, 93.57, 93.30, 93.09, 92.86
\nPsychological: .95, .94, .93, 2010 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 is ducking back below its psychological 94 level as the risk trade experiences a setback across the board.\u00a0 The concept of a hung parliament in the UK and renewed uncertainty in Greece has dented the risk trade\u2019s recent rally.\u00a0 Greece\u2019s bond prices are dropping again after government officials expressed … <\/p>\n

Continue reading “USD\/JPY Ducks with Risk Trade”<\/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-8271","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8271","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=8271"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8271\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}