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2 Sep 2015
USD/JPY gets its spot back on the 120 handle in Tokyo
FXStreet (Guatemala) - USD/JPY was firmly placed in 119.70 at the time of the Tokyo open, despite a negative open in the Nikkei, while the Yen was riding the 20 SMA support on the hourly charts and testing the resistance of the 20 SMA on the thirty minute sticks. As we progress through the open, USD/JPY is up to test the 50 SMA on the 30 min sticks and looking for a firm placement here now that it is back on to the 120 handle with S&P 500 futures soaring.
Earlier, the major was otherwise offered and bought back again without much contest in a thin early Asian session which may have accounted for the ease of which the price had been able to fluctuate, supported back on to the bid from 119.20 territory.
The Yen is otherwise benefiting from the heavy risk-off and liquidation of EM's, speculative commodity positions and global equities. However, leading into the Tokyo open, S&P 500 stablized and then turned highly positive and 4% into the green on the open and now +15% at time of writing as the USD/JPY reclaims the 120 handle.
On a recap from overnight, the US session has the S&P 500 down 2.95% to 1914 by the close, the Dow was -2.83% at 16059.42 and NASDAQ - 3.09% at 4142.63. US 10-year yields dropped down to 2.15% by 6.5 basis points on the back of the worst result in ISM manufacturing for the US since May 2013 that arrived 51.1 vs 52.56 expected and 52.7 prev.
USD/JPY bearish medium term below 120.70 DMA
The breaks of the 200 DMA is compelling for the bears and the subsequent follow through opens up the 116.15/115.85 key support level. From here, the downside levels to watch now are 119.20 and 118.33 March lows ahead of aforementioned 115.85 2015 lows and then 113.98 2011 low that guards 105.85, the 38.2% retracement of the move up from 2011 and 200 month MA.
to the upside, closes above 120.20 and 120.70 200 DMA put the pair back into neutral for a fighting chance of territory back on the 122 handle.
Earlier, the major was otherwise offered and bought back again without much contest in a thin early Asian session which may have accounted for the ease of which the price had been able to fluctuate, supported back on to the bid from 119.20 territory.
The Yen is otherwise benefiting from the heavy risk-off and liquidation of EM's, speculative commodity positions and global equities. However, leading into the Tokyo open, S&P 500 stablized and then turned highly positive and 4% into the green on the open and now +15% at time of writing as the USD/JPY reclaims the 120 handle.
On a recap from overnight, the US session has the S&P 500 down 2.95% to 1914 by the close, the Dow was -2.83% at 16059.42 and NASDAQ - 3.09% at 4142.63. US 10-year yields dropped down to 2.15% by 6.5 basis points on the back of the worst result in ISM manufacturing for the US since May 2013 that arrived 51.1 vs 52.56 expected and 52.7 prev.
USD/JPY bearish medium term below 120.70 DMA
The breaks of the 200 DMA is compelling for the bears and the subsequent follow through opens up the 116.15/115.85 key support level. From here, the downside levels to watch now are 119.20 and 118.33 March lows ahead of aforementioned 115.85 2015 lows and then 113.98 2011 low that guards 105.85, the 38.2% retracement of the move up from 2011 and 200 month MA.
to the upside, closes above 120.20 and 120.70 200 DMA put the pair back into neutral for a fighting chance of territory back on the 122 handle.