Sep
9
2010
9
2010
USD/JPY Dribbles Lower
The USD/JPY is continuing its gradual decline after previous September lows gave way. Noda ratcheted up the rhetoric yesterday and implied that the possibility of intervention has increased as the Yen’s appreciation damages earnings of Japanese exporters. However, investors have thus far brushed aside verbal intervention from policy makers and the BOJ will need to take definitive action in order to end the USD/JPY’s slide. Analysts and investors simply aren’t buying talk anymore. On the other hand, bears should be aware that the BOJ may in fact step up to the plate sooner rather than later as the Yen touches levels not seen in over 15 years. If the BOJ does intervene then the USD/JPY is prone to a violent move higher. Meanwhile, investors are awaiting U.S. trade balance data along with weekly unemployment claims. Japan will light up the data and news wires tomorrow with final GDP and the release of the BOJ’s monetary policy meeting minutes. If the meeting minutes show the BOJ is leaning towards intervention this could help buoy the USD/JPY as the trading week comes to a close.
Technically speaking, the USD/JPY has supports in the form of intraday lows. As for the topside, the USD/JPY faces technical barriers in the form of intraday and 9/3 highs.
Present Price: 83.67
Resistances: 83.70, 83.89, 83.98, 84.15, 84.25, 84.39
Supports: 83.57, 83.18, 83.02, 82.86, 82.70, 82.54
Psychological: 85, August Lows
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Posted by: Matthew Myers
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