Month: November 2009

By Fast Brokers – The EUR/USD staged an encouraging rally on Friday, bouncing off our 2nd tier uptrend line as both gold and the S&P futures headed higher despite weaker than expected EU GDP data along with a disappointing UoM Consumer Sentiment number.  However, the bounce has stalled at what is now our 2nd tier downtrend line and the EUR/USD is confronting the highly psychological 1.50 area once again.  Hesitation in the EUR/USD comes in reaction to mixed U.S. Retail Sales data along with a weak reading from the Empire Index.  The continuation of a negatively mixed data flow from the U.S. is deterring investors from sending the EUR/USD beyond 1.50 and the S&P futures past 1100.  As a result, the EUR/USD appears stuck in a trading range between previous November highs and lows.  That being said, the EUR/USD has technical forces at work on both sides.

Technically speaking, the EUR/USD still faces our 2nd and 3rd downtrend lines along with the highly psychological 1.50 level and previous November highs.  However, the topside barriers are wearing thin, and a breach beyond our 3rd tire downtrend line could result in a retest of November and October highs with the possibility of more accelerated immediate-term gains.  As for the downside, the EUR/USD has built up a solid support system considering the rally since November lows.  Therefore, the EUR/USD has multiple uptrend lines serving as technical cushions along with 11/12 and 10/27 lows.  Meanwhile, investors should keep an eye on the S&P’s interaction with its psychological 1100 level because a topside breakout in the S&P could bring the EUR/USD along for the ride due to their positive correlation.

The EU will be relatively quiet on the data side, leaving tomorrow’s action up to British and American pricing data.  The EU released CPI data in line with expectations today, yet investors have shown a muted reaction to the data release thus far.

Present Price: 1.4962

Resistances: 1.4967, 1.4992, 1.5011, 1.5019, 1.5046, 1.5060

Supports: 1.4952, 1.4937, 1.4924, 1.4904, 1.4883, 1.4856

Psychological: 1.50, November Highs and Lows

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither 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.

Risk Disclosure: 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.

By Russell Glaser – Gold continues to consistently rise above its record prices from the previous weeks as a slumping dollar has boosted prices for the commodity. Trading during today’s Japanese session pushed the EUR/USD up as the pair is closing in on the psychologically important 1.5000 mark. An explanation for the dramatic rising price may also be reasons for the prices to continue their upward trend.

The price of spot gold increased as the dollar fell against both the euro and the yen today. During the afternoon trading session in Japan, the dollar was trading at a daily high of 1.4992 against the euro while falling to a low against the yen at 89.40.

During this time spot gold touched a new record high of $1132.07. Last week’s trading had the commodity climbing over 2%. Pushing the commodity higher is a weak dollar, fears of higher future inflation, and the large purchases of gold bullion by central banks.

The EUR/USD is up 1.8% this month as risk aversion is dissipating in the financial markets and traders are seen as being bullish on an economic recovery. However, due to the continued dovish monetary policy by the leading central banks in the world, fears remain of higher inflation. The lack of interest rate tightening and the scaling back of programs designed to inject liquidity into the financial markets make gold an attractive investment. Gold is typically known as a hedge against inflation.

Also the purchase of 200 tons by the Reserve Bank of India from the IMF at the beginning of the month has highlighted not only traders appetite for the commodity, but also the major institutional economic powers who feel gold may be a good investment and a way to diversify their holdings away from the dollar.

The major trend that began more than one year ago has continued at an unbridled pace. Despite the news reels and highlights the commodity has received in the press, spot gold trading has not shown signs yet of a correction in the price.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The strongest trend in the market appears to be the bullishness of gold. Gold continues to break new records on a daily basis, and with a week packed with publications from the U.S economy entering, the main question is, can gold reach higher?

Economic News

USD – Dollar Continues to Weaken Following Disappointing Data

The Dollar continued to weaken during last week’s trading session. The Dollar extends its slow yet steady slide against the Euro, and the EUR/USD pair is reaching towards the 1.50 level again. The Dollar also depreciated against the Yen and the Pound.

The main reason for the Dollar’s drop appears to be the disappointing data published from the U.S economy. The U.S Trade Balance, which measured the difference in value between imported and exported goods and services during September, dropped to -36.5B, much lower than the -31.8B expected. This has both positive and negative sides. From one hand, the American citizens are consuming more, stating that the economy is recovering. However, on the other hand, it also states that the export industry fails to reach its levels prior the recession. It seems that investors have focused on the negative view of this publication. Also last week, the Preliminary Consumer Sentiment failed to reach expectations for a 71.1 figure, and reached merely 66.0, its lowest result in 4 months. This shows that the U.S consumers still prefer to hold on to their funds, and are not hurry to spend them. In other words, American people still don’t have enough confidence in their financial security.

As for the week ahead, many interesting publications are expected from the U.S economy. Traders should focus on the Retail Sales reports, the Producer Price Index, the Consumer Price Index, the Building Permits and the weekly Unemployment Claims. As for today, traders are also advised to follow the speech by Federal Reserve Chairman Ben Bernanke, which is expected at 17:15 GMT. Lately his speeches had an instant impact on the market, and traders should take advantage of the opportunities that may arise as a result.

EUR – Euro Sees Mixed Results against the Majors

The Euro saw a volatile session against the major currencies during last week’s trading. The Euro managed to strengthen against the Dollar, yet saw mixed results against the Yen and the Pound.

Despite the weak Dollar, the Euro didn’t manage to strengthen against the major currencies. Usually, when the Dollar is so weak, the Euro gets stronger, yet last week this axiom failed to exist. The main reason that the Euro didn’t strengthen appears to be the negative data released from the German economy. German Economic Sentiment dropped in November to its lowest result in 4 months, reaching merely 51.1, far less than the expected 55.2 figure. This states that the German economy’s pace of recovery might be a little slower than expected. In addition, the German Preliminary Gross Domestic Product failed to reach expectations for a 0.9% growth, and rose by only 0.7%. These two leading indicators have created hesitations among investors regarding the Euro-Zone’s recovery, and by so have weakened the Euro.

As for this week, a batch of data is expected from the Euro-Zone. The most impacting publications look to be the European Consumer Price Indices, the European Current Account, and especially the German Producer Price Index. Following the recent disappointing data from the German economy, further negative data could have an extremely negative impact on the Euro. Considering that this is the most significant data from the German economy this week, traders are advised to follow its result.

JPY – Japan’s Interest Rate Announcement Expected this Week

The Yen continued to see volatile trading against the major currencies during last week’s session. The Yen rose a little against the Dollar, but mainly ups and downs against the Euro and the Pound.

The Yen’s volatility came as a result of the mixed results from the leading publications of the Japanese economy last week. Both positive and negative data was released, and this has created range-trading for the Yen’s leading pairs and crosses. The most significant negative data came from the Current Account report, which showed the difference in value between imported goods and services failed to reach expectations for 1.53T, and reached 1.34T. Japan’s economy relies greatly on its exports, and thus the lower-than-expected figure has weakened the Yen. On the other hand, a surprising surge in the Core Machinery Orders has created optimism that the Japanese economy might be on its way to recover. As a result of the uneven results, the Yen didn’t see a clear direction during last week’s session.

Looking ahead to this week, the most intriguing publication from Japan is clearly the Overnight Call Rate on Friday, which is in fact the Japanese interest rate announcement for the upcoming month. Analysts forecast the Bank of Japan (BoJ) will leave rates at 0.10%. However, if the BoJ will surprise traders with a rate hike, the rate change may have the potential to boost the Yen. Traders are advised to follow the result of the announcement.

OIL – Crude Oil Drops on Weak U.S. Energy Demand

Crude oil saw a bearish trend during last week’s trading session. Crude oil dropped to $75.60 a barrel, its lowest value in a month. Furthermore, ever since crude oil was trading at $82.0 a barrel, it saw a slow, yet coherent downtrend.

The main reason for the drop in oil’s value seems to be speculations that the U.S demand for energy has declined. The slide began on Thursday as Crude Oil Inventories surprisingly rose to 1.8M barrels, well above expectations for a 0.8M result. In addition, the negative data from the U.S. economy on Friday has increased concerns for a reduced energy demand. The combination of high supply and low demand could have only one result – crude oil reached a month low.

As for this week, traders should follow the main publications from the U.S. economy. Traders should bear in mind that currently investors interpret positive data as a good sign for energy demand and vice versa. In addition, traders should also focus on the Crude Oil Inventories report on Wednesday, as this publication usually has an immediate impact on crude oil trading.

Technical News

EUR/USD

The bullish trend has continued for the past two trading sessions with a strong uptrend intact. The charts are showing no sign of weakening this trend as the pair is once again flirting with the significant 1.5000 price level. This pair could continue its uptrend, climbing potentially to the 1.5070 level by the end of today’s trading session.

GBP/USD

The 4-hour chart is showing the potential for bearish trading today. The chart displays the Relative Strength Index is trading in the overbought zone, indicating the potential for a downward correction. Traders may prefer to be short on this pair today.

USD/JPY

The pair could see some upward movement today as a bullish cross has formed on the 4-hour chart’s Slow Stochastic Oscillator, indicating the potential for some upward movement. It appears the pair has been consistently trading within the lower boundary on the daily chart’s Bollinger Bands, lending to a possible appreciation to the 20 day average.

USD/CHF

Traders may notice the 4-hour chart’s Bollinger Bands. The pair has bounced off the upper Bollinger Band and has crossed the 20 day average line, indicating the lower band could be the next price target. This may give traders the incentive to be short on this pair and continue to ride the long term downward trend.

The Wild Card – Gold

The commodity has reached an all time high yesterday at $1129.72 and has continued its. The uptrend is not showing definitive signs of slowing. The daily chart shows the pair has consistently traded in the upper half of the chart’s Bollinger Bands. This may indicate a strong uptrend. Until we see the commodity cross the 20 day average line suggesting the trend is weakening, forex and gold traders may want to continue to be long on gold.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

The equity markets headed northbound, making new highs for 2009 last week, as solid earnings and encouraging economic news pushed investors back into riskier assets.  The large cap S&P 500 closed the week up 24 points or 2.25%. The S&P 500 Index created a new high for 2009, hitting 1,105 and the DJIA kept its pace, reaching 10,342 points. Equities moves were mainly affected by the currency market last week as large cap multinational stocks that are often affected by Forex fluctuations, led the way higher.

The markets started off on a solid note on Monday, after the G20 showed minimal concern with regards to the weakness in the US dollar.  US equity markets surged, with DJIA and S&P up 2.0% and 2.2%, respectively.  Financials and industrials outperformed which lead the markets higher. The main message from the weekend G-20 meeting was that governments would maintain and back strong stimulus efforts to those economies which are now moving in the right direction to deal with the current recession.

On Wednesday there was a plethora of economic data out of Asia which stimulated confidence that global growth was on the mend.  The impressive retail sales figure (up 16.2% y/y vs. 15.7% expectations and 15.5% in Sept) and industrial production (which accelerated from a 13.9% y/y pace in Sept to 16.1% in Oct vs. 15.5% expectations) helped bolster hopes China will help the global economy to gain further traction.  This, combined with the better than expected Japanese machine orders which grew more than twice as fast as expected in Sept, reinforced faith in the recovery. Orders were up 10.5% m/m, much more than the 4.1% expected.

The Equity markets continued to hold onto gains for the week as market participants awaited the Jobless Claims number out of the US, which was scheduled on Thursday.  The U.S. Labor Department said in its weekly report that initial claims for jobless benefits fell by 12,000 to 502,000 in the week ended Nov. 7. That was the lowest level since Jan. 3. The previous week’s level was revised to 514,000 from 512,000.  Although analysts were expecting a drop to 510,000, optimists were hoping for a fall below 500,000.  The result disappointed and resulted in some profit taking, which caused the equity indices to drop and the dollar to rise.

On Friday, the EMU released its GDP which came out slightly worse than expected.   Euro-zone gross domestic product grew 0.4% in the third quarter, after dipping 0.2% in the second. This was the first quarterly expansion since the first quarter of 2008. On an annualized basis, the contraction in GDP eased to 4.1% from 4.8% in the second quarter. Economists were expecting the first estimate of third-quarter GDP to show that the economy had expanded 0.6% on a quarterly basis and contracted 3.9% on an annual basis.

Forex:

Even though the Dollar showed relative strength last week, it failed to present any major moves, appearing to be running out of steam.  The euro lost ground after failing to sustain gains above $1.5000 and dropped towards the end of the trading week. Even though traders preferred to cash in on recent gains, the currency managed to stay above the $1.4875/85 area (around the 20-day moving average and 38.2% retracement of the recent rally).  The Euro zone industrial production data was somewhat disappointing, and increased by only 0.3% m/m in Sept (0.5% exp). On the upside, economic data also showed that Germany’s output jumped 3% in Sept and contributing to the slightly smaller than expected contraction in Germany’s GDP result for the third quarter.  Spain’s GDP also showed a better than expected result at -4.0% y/y vs. -4.1%. From a technical point of view, the Euro is now in danger of forming a double top, struggling advance above $1.50.  One must note that break below 1.48 could create a downdraft for the EUR/USD and lead to additional selling pressure.

The Australian dollar hit new highs for the year touching 93 cents against the US dollar.  Australian home approvals climbed by the most in six months in September, giving the RBA justification to hike rates in coming months. Though the central bank has pointedly used the word ‘gradual’ to describe the movement of interest rates in coming months, improving data continues to underpin speculation of sharper tightening.  The AUD/USD finished the week just under multi-year highs.

The pound came under pressure after the BoE’s King, commented after the release of the Quarterly Inflation report. The bank Governor talked about the benefits to the economy of a weaker pound and mentioned that it could help economic growth.  He also said he has an “open mind” on bond purchases, suggesting the BoE has not necessarily reached the end of Q/E.  The BoE said inflation is still expected to come in below the 2% target for most of the next 3 years before edging higher.  The Dovish comments had a negative impact on the sterling sending the cable down after posting hefty gains. Even though, fundamental data is pointing to further weakness, technical levels could hold strong, especially as the Sterling is now trading around prior resistance.

The week Ahead

Next week, a wave of data is going to be released, some of which will have a major effect on the intraday sessions.  On Monday the week will start off with US Retail sales and Business Inventories.  On Tuesday the market will need to absorb UK CPI and US PPI, Industrial Production and Capacity Utilization. During the week Australian Wage Price Index will be released, followed by UK BOE minutes and the closely watched US CPI figure. The number will be scrutinized by investors to make sure that inflation isn’t showing signs that could hurt economic growth. On Friday the BOJ will announce their interest rate decision. The bank is expected to hold at current levels of 0.1%.

Daily Forex Market Analysis provided by eToro

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.

© 2009 eToro Blog.

By Alex Cadens – It is no secret that the Forex market can be a very profitable place to be if you want to make money by trading currencies.

However, it is also no secret that achieving consistency within the Forex market requires a lot of preparation (you need education and reliable trading tools) because not only you need to have a good idea of where the price is about to move, but also how far it is going to go.

For instance if you are trading the EUR/USD pair and you decide it is a good idea to go long, you would place a “buy” order, because you are expecting the price of the Euro against the dollar to go up.

If you placed your trade using 1 mini lot (this equals $1 profit for every pip), and your target for that trade is 30 pips, you would need to have at least $1,000 in your account to meet margin requirements and allow some room for drawdown, and if the trade is successful you will make $30 in profits.

However, in order for this to happen the price of the Euro has to move 30 pips against the dollar, otherwise you will not reach the intended target and realize the profits. As you can see, if you trade the Forex market using the traditional approach you will have not only to predict where the price is going, but also how far it is going, which simply makes it twice as difficult.

Now, if you have $1,000 in a binary options trading account, what would you need in order to place a successful trade, and moreover, what kind of profits a successful trade would deliver for you?

In order to answer this question, let us assume that the price of the EUR/USD is at 1.47849 and based a given analysis of the market (e.g. swing trading pattern recognition) you think that the Euro is trending up against the Dollar.

In this case you would go long as well, but instead of placing a “buy” order for currency, you would simply buy a $100 call option for the EUR/USD pair with a 1 hour expiration. If you are right and the price goes up, even if it is only 0.001 pip above the price you purchased your call option (which is the strike price), and it remains there or above until expiration, you would get as much as 75% return on your $100 investment.

In other words, a single $100 trade could easily deliver $75 in profits and you could repeat this process several times during the day.

But the remarkable thing here is that you did not need the price to go up 30 pips in 1 hour to get a 75% return on your investment, you only needed 0.001 points of variation to achieve this.

In this scenario you certainly had to determine in what direction the price was going to move (this is usually an ingredient of the trading process) BUT your forecast did not have to take you all the way to a 30 pips increase in the price in order for you to make get the expected return, because you got it with just 0.001 points of variation, and you made $75 instead of $30.

Also, you can open a binary options account with only $100 and you can trade with as little as $30 with no commissions charges.

So as you can see, the potential of Forex trading through binary options is huge and the process is far simpler thus increasing your chances for profitable trades, however, you do need to have a sense of where the market is going. Provided that you have this, you are likely to make take far more winning trades than losing ones and a lot more money as well.

If you are new to binary options you can Gain FREE Access to a complete trading package that will teach you how to accurately find the direction in the price of any asset, currency or index, thus enabling you to be profitable at Binary Options Trading.

About the Author

Doing business online and being successful at it is something achievable by literally anyone willing to go for it, provided that you have the necessary know-how as well as quality tools and resources by your side. Learn more at the Online Business Review

By Gabriel Knight – Day trading has opened up a lot of different ways to trade such as regular stocks, futures and now Options. It is common for day traders to trade one or even a combination of these assets. Since there are options in futures and stocks, options can still be traded nevertheless. An option is basically an asset with conditions embedded with the asset, hence the name options. There are two types of options: a call option and a put option. A call option is when the buyer would like to buy an asset on or perhaps before a designated date, usually including an extra interest for this option to buy it at a later date than the day of the agreement. The put option not only allows the buyer to purchase the asset at a certain date, but also reserves the right to sell it whenever he pleases, whether later on or right away.

Trading options is a great way to profit as a day trader. It would also be helpful and an advantage to be able to understand the options of the assets you are trading. In most cases, the buyer will be the one to benefit, since he would have to be the one to shoulder the fee to avail of the option. This is why you must really be certain and understand the option you are trading. It is when you do, which makes options trading very profitable. Options, depending on whether it is short- or long-term, have two very opposite sides of the coin. In the long-term, the option has a low risk but high profit and vice-versa with short-term. Therefore, do your homework when dealing with day trading options. It might be worth the extra work.

About the Author

Are you looking to make a daily income by learning the secrets of day trading options? Visit http://www.eminitradingstrategies.com for a free video on how to trade for a daily income!

By Adam Hewison – Yesterday, 11/12/09, the gold market took its first corrective action on the downside. The question many traders will have now is, have we hit the high end for gold this year?

In my latest video I examine that question in some of the internals that I see and feel are important in this market.

As always our videos are free to watch and there is no need to register.

Watch the Gold Video Here…

Adam Hewison
President, INO.com
Co-creator, MarketClub

By CountingPips.com

The Eurozone economy emerged from recession in the third quarter according to a final estimate by Eurostat released today. The 16-nation eurozone gross domestic product advanced by 0.4 percent in the July to September quarter following a GDP contraction of 0.2 percent in the second quarter. The eurozone had registered five straight quarters of declining growth and experienced its first recession on record.

The contraction in GDP failed to surpass the expectations by market forecasters of a 0.5 percent gain for the economy. On an annual basis, the eurozone economy was still 4.1 percent below last year’s third quarter level following the second quarter’s annual contraction of 4.8 percent. Economic forecasts were looking for an annual decrease of 4.5 percent.

The EU27 saw a rise in GDP by 0.2 percent for the third quarter while on an annual basis GDP was down by 4.3 percent.

Germany, the eurozone’s largest economy, which emerged out of recession in the second quarter, saw a GDP gain of 0.7 percent for the third quarter. France, the eurozone’s 2nd largest economy, showed GDP growth of 0.3 percent for the second quarter in a row.  Other EU16 countries showing a positive GDP in the quarter were Belgium, Italy, the Netherlands, Austria, Portugal and Slovakia.

Despite the positive GDP data, the euro has been mostly losing ground today in the currency markets. The euro has fallen against the Swiss franc, Canadian dollar, British pound, Australian dollar and New Zealand dollar while gaining against the US dollar so far today.

EUR/CHF Daily Chart – The Euro falling today versus the Swiss Franc in forex trading.  The EUR/CHF is falling to levels where there has been previous heavy buying. The Swiss National Bank has intervened this year in order to keep the franc lower and avoid deflationary pressures in Switzerland.  The 1.5080 level has been a significant support level for this pair and will present a test of franc strength.

By Fast Brokers – Gold experienced a 2nd retracement to the psychological $1100/oz level after topping out around $1120/oz.  Gold’s weakness came with pullbacks in both the EUR/USD and AUD/USD as investors locked in profits and headed for safety amid slight investor uncertainty.  However, gold is bouncing off $1100/oz and our 2nd tier uptrend line as the EUR/USD, AUD/USD, and S&P futures recover some of their intraday losses despite a wave of negative econ data from both the EU and U.S.  EU GDP and U.S. consumer sentiment data releases all printed below analyst expectations, indicating the global economic recovery may be more gradual than anticipated.  The S&P futures initially reacted negatively to the news, yet investors are trying to pull the futures back up towards 1100.  However, it’s difficult to imagine the markets will end the day positively considering there’s not much of a silver lining to today’s data flow.

Regardless, gold has held strong above $1100/oz despite two retracements.  Therefore, the precious metal’s upward momentum is still intact, though the uptrend’s patience is being tested.  After all, gold has been on a furious rally lately and some profit taking would not be out of the ordinary.  Meanwhile, investors should continue to monitor activity in both the EUR/USD and AUD/USD since gold is more closely correlated to these two major Dollar crosses.

Technically speaking, we’re still not able to place a downtrend line on our chart with confidence, meaning 11/12 highs will serve as the next topside barrier.  As for the downside, gold still has multiple uptrend lines serving as technical cushions along with intraday, 11/10, and 11/05 lows.  Meanwhile, $1100/oz could continue to have a say due to its psychological relevance as of late.

Present Price: $1107.05/oz

Resistances: $1108.08/oz, $1110/59/oz, $1114.39/oz, $1117.87/oz $1122.54/oz

Supports: $1103.09/oz, $1100.46/oz, $1097.83/oz, $1093.33/oz, $1088.64/oz, $1083.12/oz

Psychological: $1100/oz.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither 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.

Risk Disclosure: 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.

By Fast Brokers – The USD/JPY has managed to bottom out above 11/11 lows and our 2nd tier uptrend line despite a pullback during the Asia trading session.  The USD/JPY’s behavior has been erratic lately as investors debate how to deal with the currency pair’s highly psychological 90 level.  Therefore, the USD/JPY has been a tough read the last week as far as correlations are concerned.  However, a near-term pattern could development at the beginning of next week with the release of Japan’s Prelim GDP data along with U.S. Retail Sales.  Stronger than expected GDP data combined with weak Retail Sales could lead investors to prefer the Yen over the Dollar, thereby weakening the USD/JPY.  Such an occurrence isn’t out of the question considering China’s Retail Sales and Industrial Production data outperformed earlier this week while America’s UoM Consumer Sentiment number disappointed today.  We’ve witnessed an increase of import demand from China, and Japan likely benefitted from this development considering China is its largest trading partner.  However, we will have to see how the data pans out before proceeded with more in-depth fundamental analysis.

Meanwhile, the USD/JPY still has our 1st and 2nd tier uptrend lines serving as technical supports along with 11/11, 11/02, and 10/14 lows.  Therefore, the USD/JPY has quite a few technical cushions in place should conditions deteriorate.  As for the topside, the USD/JPY is still mired in its long-term downtrend and faces multiple downtrend lines along with 11/12 and 11/06 highs.  Furthermore, the psychological 90 level serves as both a technical cushion and barrier.  Therefore, the USD/JPY may need a sizable jolt to proceed in a more definite direction.

Present Price: 89.68

Resistances: 89.77, 89.92, 90.04, 90.19, 90.31, 90.43, 90.58, 90.72

Supports:   89.54, 89.43, 89.26, 89.15, 88.99, 88.85

Psychological: 90, November and October Lows

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither 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.

Risk Disclosure: 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.