Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY steady post big US bear drop, Nikkei tumbles
FXStreet (Guatemala) – USD/JPY is currently trading at 123.83 with a high of 123.90 and a low of 123.81.
USD/JPY is steady on the open in Tokyo and in consolidation of the drop overnight on the back of a broad based sell off in the greenback.
USD/JPY has lost its bullish bias on the short term sticks on the back of profit taking on overbought positions in the US dollar. There was less risk appetite in the US markets with softness in stocks that Asia has sold into also with the Nikkei down 0.9% on the open, down from near 18-year highs. In the background, the BoJ will include core-core CPI (ex fresh food and energy) in the monthly data release and Kuroda say’s that inflation will pick up in the months ahead towards reaching their target by 2016.
The calendar overnight was relatively light but markets jumped on to the back of the revisions to the Fed’s industrial production that was original sighted at 0.3% but revised to 0.2% and this also weighed on the greenback overnight. Today has little in the way of domestic data apart from the All Industry Activity Index for May M/M. However, we may see some activity coming through from Stevens talking and Australian CPI’s for Q2.
Technically, the major remains in the bullish trend from below 120.40 earlier in the month. 123.20 is the target on a break below the bearish opening gap at the end of June’s business guarding the V-shaped recovery at 122.50. Karen Jones, chief analyst at Commerzbank noted that dips lower last week held over the 20 day ma at 123.13 and the market remains well placed for further gains. “Note the market is contained higher in a trend channel and this offers resistance this week at 127.70 – this is our short term target.”
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USD/JPY steady post big US bear drop, Nikkei tumbles
Source: FXStreet
