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1 Sep 2015
USD/JPY: BIG bear breach; full load down as downside opens up
FXStreet (Guatemala) - After a non-convincing time on the 121 handle, capped at 121.62 at the 200 SMA on the hourly chart, there has been a major breach in USD/JPY.
The downside is now wide open below the March lows, en- route to the 116.15/115.85 2015 low and the recent low, depending. USD/JPY breached the key 120.70 200 DMA overnight.
USD/JPY lower on negative global outlook and uncertainty
The stability that appeared last week after Black Monday seems to be dissipating as we progress from the start of September, fueled by ongoing uncertainty and poor performances in global equities, commodities and notably, EM economies. We had IMF's Lagarde say that global growth will be moderate and weaker than expected last July and also said that Asia growth would be weaker than expected and lower commodity prices would persist.
China is viewed as problem area, and last night, after a weak open on Tokyo, the Chinese PMI's pointed to further slow downs in the economy, The Chinese bourses opened with a bearish gap continued lower. However, at the end of the day, the largest stocks in China as recorded on the SSE50 was up around 1.0% due to Chinese intervention propping the largest companies up while the composite closed -1.2%. Nikkei ran up big loses into the closing hour and finished 450 ticks down on the lows.
USD/JPY falling on European stocks and data
European stock market opened followed suit, with the UK back from a Bank Holiday, the FTSE started out -1.0%, the French Cac -1.5%, the German Dax -1.8%, the Italian Ibex -1.4% And then all closed much lower, FTSE -3.0%, DAX -2.6%, CAC -2.6%, IBEX -2.8%. As a result, USD/JPY collapsed and was aided by poor manufacturing in Europe.
119.53 was the low in European trade while some attempts made it back to the 120 handle, but capped by 20 SMA on the 30-min sticks at 120.17. The worst result in ISM manufacturing for the US since May 2013 that arrived 51.1 vs 52.56 expected and 52.7 prev has put further downside pressure on USD/JPY in the US session. It also looks as though we are headed for a troublesome day on Wall Street with S&P futures down -2.13% at time of writing.
USD/JPY downside levels
The downside levels to watch now are 119.25 and 118.33 March lows ahead of 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.
The downside is now wide open below the March lows, en- route to the 116.15/115.85 2015 low and the recent low, depending. USD/JPY breached the key 120.70 200 DMA overnight.
USD/JPY lower on negative global outlook and uncertainty
The stability that appeared last week after Black Monday seems to be dissipating as we progress from the start of September, fueled by ongoing uncertainty and poor performances in global equities, commodities and notably, EM economies. We had IMF's Lagarde say that global growth will be moderate and weaker than expected last July and also said that Asia growth would be weaker than expected and lower commodity prices would persist.
China is viewed as problem area, and last night, after a weak open on Tokyo, the Chinese PMI's pointed to further slow downs in the economy, The Chinese bourses opened with a bearish gap continued lower. However, at the end of the day, the largest stocks in China as recorded on the SSE50 was up around 1.0% due to Chinese intervention propping the largest companies up while the composite closed -1.2%. Nikkei ran up big loses into the closing hour and finished 450 ticks down on the lows.
USD/JPY falling on European stocks and data
European stock market opened followed suit, with the UK back from a Bank Holiday, the FTSE started out -1.0%, the French Cac -1.5%, the German Dax -1.8%, the Italian Ibex -1.4% And then all closed much lower, FTSE -3.0%, DAX -2.6%, CAC -2.6%, IBEX -2.8%. As a result, USD/JPY collapsed and was aided by poor manufacturing in Europe.
119.53 was the low in European trade while some attempts made it back to the 120 handle, but capped by 20 SMA on the 30-min sticks at 120.17. The worst result in ISM manufacturing for the US since May 2013 that arrived 51.1 vs 52.56 expected and 52.7 prev has put further downside pressure on USD/JPY in the US session. It also looks as though we are headed for a troublesome day on Wall Street with S&P futures down -2.13% at time of writing.
USD/JPY downside levels
The downside levels to watch now are 119.25 and 118.33 March lows ahead of 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.