Sep
6
2010
6
2010
USD/JPY Trends Lower as BOJ Meets
The USD/JPY is trending back towards August lows as the BOJ kicks off its monthly monetary policy meeting. The BOJ will announce its decision tomorrow and the USD/JPY is struggling since analysts aren’t expecting any new action from the central bank as far as currency intervention is concerned. Regardless, statements from the BOJ will carry more weight over the near-term since the USD/JPY is trading in dangerous waters. Meanwhile, the longer the USD/JPY can hold above August lows the better chance the currency pair has of establishing a more lasting bottom. Bulls will be looking for some help from global economic fundamentals since neither the BOJ nor the DPJ are getting the job done in regards to weakening the Yen in order to aid Japanese exports. If U.S. data can manage to improve from a dismal August then investors may regain confidence in the risk trade and encourage bears to divest from the Yen and head back towards risk. Additionally, investors should monitor the ability of the EUR/USD and Cable to climb above key technical barriers, for a topside breakout in the FX risk trade would likely benefit the USD/JPY.
Technically speaking, the USD/JPY has supports in the form of 9/2 and 9/1 lows. As for the topside, the USD/JPY faces technical barriers in the form of 9/3 highs and the psychological 85 level.
Present Price: 84.07
Resistances: 84.15, 84.25, 84.39, 84.47, 84.57, 84.68
Supports: 83.98, 83.89, 83.70, 83.57
Psychological: 85, August Lows
|
Posted by: Matthew Myers
|
Disclaimer: FastBrokers' market commentary is provided for information purposes only and under no circumstances should be regarded neither as 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. All materials are property of Fast Trading services, LLC and unless otherwise indicated, any unauthorized reproduction is prohibited.