{"id":9844,"date":"2010-05-31T11:32:11","date_gmt":"2010-05-31T15:32:11","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9844"},"modified":"2010-05-31T11:32:11","modified_gmt":"2010-05-31T15:32:11","slug":"usdjpy-climbs-amid-political-discontent","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/31\/usdjpy-climbs-amid-political-discontent\/","title":{"rendered":"USD\/JPY Climbs Amid Political Discontent"},"content":{"rendered":"

By Fast Brokers<\/strong> – The USD\/JPY is continuing its positive performance from May lows as the currency pair creates some topside separation from its highly psychological .90 level.\u00a0 The USD\/JPY\u2019s run from May lows has been impressive and a new bottom appears to be in place.\u00a0 However, investors should keep in mind that the Yen\u2019s safe haven status could come back into play should investor uncertainty escalate once again.\u00a0 Meanwhile, the USD\/JPY is deriving today\u2019s strength from news that Japan\u2019s social democrat party is stepping down.\u00a0 Hatoyama\u2019s approval rating is now below 20% and nearly 60% of Japanese voters think he should resign.\u00a0 Discontent over Hatoyama\u2019s unwillingness to shut down America\u2019s military base has eroded confidence in his leadership.\u00a0 Hence, investors believe July\u2019s upper house election may result in a coalition government and reduce Japan\u2019s ability to counter global economic headwinds.\u00a0 This has reduced near-term appetite for the Yen.\u00a0 However, as we said before, the Yen has not lost its status as a safe haven during time of uncertainty, meaning investors should keep a wary eye on new developments in the EU.\u00a0 Japan\u2019s industrial production release came in below analyst expectations today, though average cash earnings exceeded estimates.\u00a0 Hence, it\u2019s a mixed bag for Japanese fundamentals.\u00a0 Tomorrow\u2019s Asia trading session should be active with Chinese manufacturing PMI on deck along with key releases from Australia followed by an RBA rate decision.\u00a0 Therefore, it will be interesting to see how risk tolerance fares over the next 24-48 hours.<\/p>\n

Technically speaking, the USD\/JPY still faces multiple downtrend lines along with 2\/19 highs and psychological 92 level.\u00a0 As for the downside, the USD\/JPY has technical supports in the form of multiple uptrend lines along with 5\/28 and 5\/26 lows.\u00a0 Additionally, the highly psychological 90 level should serve as a solid technical support should it be tested.<\/p>\n

Present Price: 91.49
\nResistances: 91.50, 91.67, 91.79., 91.94, 92.11, 92.25
\nSupports:\u00a0 91.26, 91.03, 90.88, 90.77, 90.64, 90.55, 90.35
\nPsychological:\u00a0 .90, .92, May lows<\/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 continuing its positive performance from May lows as the currency pair creates some topside separation from its highly psychological .90 level.\u00a0 The USD\/JPY\u2019s run from May lows has been impressive and a new bottom appears to be in place.\u00a0 However, investors should keep in mind that the Yen\u2019s … <\/p>\n

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