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24 Aug 2015
USD/JPJ bulls get committed at key break down points
FXStreet (Guatemala) - USD/JPY is currently trading at 121.80 with a high of and 122.04 and a low of 121.18.
USD/JPY opened Asia with an initial bid vs the heavy supply seen before the Tokyo open which took out key supportive areas, including the 38.2% retracement of the move up from July which was located at 121.80. We are back to here now with eyes on the bearish opening gap to the upside located on the 122 handle.
The extension to the downside comes with the risk-off environment we are in and illiquid conditions at the start of the week in Asia allowed abnormally large moves over short time frames creating a bearish gap and big negative sticks on the short-term charts. At the same time, equities are down, with the Nikkei opening at a five-month low in Asia, following a 0.4% negative open in 500 S&P Futures while Australian and New Zealand share prices keep dropping also all supportive of the Yen. We now await the Chinese Yuan fix and Chinese stock markets opening.
Key events USD/JPY this week
The week ahead is a busy going to be a busy week for the US with Jackson Hole Symposium (27-29 Aug), although this year's Jackson Hole Symposium is unlikely to be a major market moving event in the noticeable absence of Fed Chair Yellen. We also have Durable Goods Orders (26 Aug) and US GDP (27 Aug) and such revisions to Q2 GDP should be positive and leave a favourable the handoff to Q3 GDP which should be supportive of the greenback.
USD/JPY bulls back to critical 121.80 zone
Technically, 121.50 is the 2015 uptrend and has been under attack but so far support is starting build again and we are back to the key 121.80 zone. Should further supply arrive the 120.40/50 early July lows are back into the picture which guard the 118.48 support line of March/April business.
USD/JPY opened Asia with an initial bid vs the heavy supply seen before the Tokyo open which took out key supportive areas, including the 38.2% retracement of the move up from July which was located at 121.80. We are back to here now with eyes on the bearish opening gap to the upside located on the 122 handle.
The extension to the downside comes with the risk-off environment we are in and illiquid conditions at the start of the week in Asia allowed abnormally large moves over short time frames creating a bearish gap and big negative sticks on the short-term charts. At the same time, equities are down, with the Nikkei opening at a five-month low in Asia, following a 0.4% negative open in 500 S&P Futures while Australian and New Zealand share prices keep dropping also all supportive of the Yen. We now await the Chinese Yuan fix and Chinese stock markets opening.
Key events USD/JPY this week
The week ahead is a busy going to be a busy week for the US with Jackson Hole Symposium (27-29 Aug), although this year's Jackson Hole Symposium is unlikely to be a major market moving event in the noticeable absence of Fed Chair Yellen. We also have Durable Goods Orders (26 Aug) and US GDP (27 Aug) and such revisions to Q2 GDP should be positive and leave a favourable the handoff to Q3 GDP which should be supportive of the greenback.
USD/JPY bulls back to critical 121.80 zone
Technically, 121.50 is the 2015 uptrend and has been under attack but so far support is starting build again and we are back to the key 121.80 zone. Should further supply arrive the 120.40/50 early July lows are back into the picture which guard the 118.48 support line of March/April business.