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22 Apr 2016
USD/JPY pressured making intra-session lows
USD/JPY is currently under pressure in the open of Tokyo where equities are down, (Mitsubishi -14%, all time low), following the low-key tone on Wall Street earlier.
USD/JPY is making intraday lows and challenging yesterday's rally from 109.21. the catalyst was a turn around in the dollar during the ECB presser and in oil. The dollar rallied and pressured the corporate sector while commodities dropped back with oil falling below $44.00 to a low of $43.03. The price stablised again, but remains in negative territory below the 20 1hr sma at $43.78.
Overnight, Russia's deputy minister Molodtsov said that a new initiative for an oil freeze may emerge in the next couple of weeks while Saudi Oil advisor Muhanna said the issue of production freezes will be discussed at the next OPEC meeting in June.
On the data front, analysts at Westpac noted that the Philadelphia Fed business survey fell sharply from +12.4 to -1.6 (+9.0 expected), with declines across most components. "This is at odds with the NY Empire State survey result last week. Initial filings for jobless claims slipped from 253k to 247k (vs 265k expected). This is a low since 1973, a very strong sign for April non-farm payrolls," explained the analysts adding, "Perhaps surprisingly, the US 10yr treasury yield rose 2bp over the day, to 1.86%, easing a little from 1.88%. The next Fed hike remained fully priced for Feb 2017."
For Japan today, we have Japan's April preliminary PMI and this is expected at 49.5 and a rise from the 49.1 Mar print.
USD/JPY levels
USD/JPY remains below this week's high at 109.88 and a full breakdown of the 108.77 20th April rally opens 107.63 as next major support being the 106.63 38.2% Fibonacci retracement of the move up from 2012. Below there lies the 200 month moving average at 105.84 which is a key target and a likely well protected support area. On the flip-side, a break-through the psychological 110 handle with daily closes exposes the February and March lows at 110.67/111.04.
USD/JPY is making intraday lows and challenging yesterday's rally from 109.21. the catalyst was a turn around in the dollar during the ECB presser and in oil. The dollar rallied and pressured the corporate sector while commodities dropped back with oil falling below $44.00 to a low of $43.03. The price stablised again, but remains in negative territory below the 20 1hr sma at $43.78.
Overnight, Russia's deputy minister Molodtsov said that a new initiative for an oil freeze may emerge in the next couple of weeks while Saudi Oil advisor Muhanna said the issue of production freezes will be discussed at the next OPEC meeting in June.
On the data front, analysts at Westpac noted that the Philadelphia Fed business survey fell sharply from +12.4 to -1.6 (+9.0 expected), with declines across most components. "This is at odds with the NY Empire State survey result last week. Initial filings for jobless claims slipped from 253k to 247k (vs 265k expected). This is a low since 1973, a very strong sign for April non-farm payrolls," explained the analysts adding, "Perhaps surprisingly, the US 10yr treasury yield rose 2bp over the day, to 1.86%, easing a little from 1.88%. The next Fed hike remained fully priced for Feb 2017."
For Japan today, we have Japan's April preliminary PMI and this is expected at 49.5 and a rise from the 49.1 Mar print.
USD/JPY levels
USD/JPY remains below this week's high at 109.88 and a full breakdown of the 108.77 20th April rally opens 107.63 as next major support being the 106.63 38.2% Fibonacci retracement of the move up from 2012. Below there lies the 200 month moving average at 105.84 which is a key target and a likely well protected support area. On the flip-side, a break-through the psychological 110 handle with daily closes exposes the February and March lows at 110.67/111.04.