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28 Jul 2015
USD/JPY: full load down and neutral before breakouts
FXStreet (Guatemala) - USD/JPY is currently trading at 123.52 with a high of 123.80 and a low of 123.06.
Uncertainty in China had been supporting the Yen, but we have seen a bounce back in Chinese bourses overnight when they recovered with the PBoC injecting the largest amount of funds since July 7th of CNY 50bln marking the 10th consecutive injection. Subsequently the Hang Seng traded in positive territory (+1.5%) and the Shanghai Comp was fluctuating between gains and losses finishing (-1%) while the Nikkei was taken down by material names to close (-0.05%). Yen was in heavy supply yesterday, but the greenback could not manage to extend the run from below 123.20 and was falling short of the 123.80 resistance in London trade. European's closed towards the opening prices on a 60 pip round turn.
In the US data wasn't positive yet the greenback garners support ahead of the FOMC this week. US consumer confidence came in the lowest since September 2014 at M/M 90.9 vs expectations of 100.0 vs Prev 101.4 and revised 99.8. For Japan tonight we have retail trade and then tomorrow we will monitor the Fed and policy statement before Japan's industrial production numbers. US GDP will then be the next one to watch before we close up for the week on Japan's CPI's. Else where with the Greek saga, the Greek parliament approved the prior actions bill last week that paves the way to a bailout which discussions have commenced this week. So far, the ECB has approved the Greek proposals for the Athens Stock Exchange to re-open while the Greek Securities Regulator Chairman has said that a decision on timing of reopening stock market to be early-Wednesday. However, the IMF maintains a cautious view point over Greece which the Yen would be supported up on with continued uncertainty.
USD/JPY technically neutral until break out levels
Technically, Westpac Banking Corporation analysts noted that the price has stalled, but remains above 38.2% retracement support and key breakout levels at 122.70/00. "Break of 124.50 targets 125.60/90. Neutral bias at current levels”.
Uncertainty in China had been supporting the Yen, but we have seen a bounce back in Chinese bourses overnight when they recovered with the PBoC injecting the largest amount of funds since July 7th of CNY 50bln marking the 10th consecutive injection. Subsequently the Hang Seng traded in positive territory (+1.5%) and the Shanghai Comp was fluctuating between gains and losses finishing (-1%) while the Nikkei was taken down by material names to close (-0.05%). Yen was in heavy supply yesterday, but the greenback could not manage to extend the run from below 123.20 and was falling short of the 123.80 resistance in London trade. European's closed towards the opening prices on a 60 pip round turn.
In the US data wasn't positive yet the greenback garners support ahead of the FOMC this week. US consumer confidence came in the lowest since September 2014 at M/M 90.9 vs expectations of 100.0 vs Prev 101.4 and revised 99.8. For Japan tonight we have retail trade and then tomorrow we will monitor the Fed and policy statement before Japan's industrial production numbers. US GDP will then be the next one to watch before we close up for the week on Japan's CPI's. Else where with the Greek saga, the Greek parliament approved the prior actions bill last week that paves the way to a bailout which discussions have commenced this week. So far, the ECB has approved the Greek proposals for the Athens Stock Exchange to re-open while the Greek Securities Regulator Chairman has said that a decision on timing of reopening stock market to be early-Wednesday. However, the IMF maintains a cautious view point over Greece which the Yen would be supported up on with continued uncertainty.
USD/JPY technically neutral until break out levels
Technically, Westpac Banking Corporation analysts noted that the price has stalled, but remains above 38.2% retracement support and key breakout levels at 122.70/00. "Break of 124.50 targets 125.60/90. Neutral bias at current levels”.