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28 Aug 2015
USD/JPY at session lows on risk-off
FXStreet (Bali) - A fresh round of selling in European equity indexes, most likely fueled by technical factors, as no news were so far attributed, has taken the Japanese Yen into its highest of the day vs the US Dollar.
Risk-off sees Yen shorts run to the exits
The familiar dynamics, by which Euro and Yen appreciate in 'risk-aversion' swings, continues to pay handsome dividends for those traders able to anticipate the current volatile market conditions. Despite Europe was taking a solid lead out of both Wall Street and Asia o/n, the selling in European equities has been relentless so far. Eurostoxx stands at -0.75%, while the DAX prints -0.83%.
USD/JPY technicals
While the recovery in the pair looked constructive, especially after breaking through a major resistance area at 120.00, the current market conditions don't justify a resumption of the bullish momentum. In terms of support, 120.70 comes as the first relevant area where bids are expected, ahead of 120.45/50 and 102.20, 120.00. On the upside, 121.00 will remain the main sticking point for bulls.
Risk-off sees Yen shorts run to the exits
The familiar dynamics, by which Euro and Yen appreciate in 'risk-aversion' swings, continues to pay handsome dividends for those traders able to anticipate the current volatile market conditions. Despite Europe was taking a solid lead out of both Wall Street and Asia o/n, the selling in European equities has been relentless so far. Eurostoxx stands at -0.75%, while the DAX prints -0.83%.
USD/JPY technicals
While the recovery in the pair looked constructive, especially after breaking through a major resistance area at 120.00, the current market conditions don't justify a resumption of the bullish momentum. In terms of support, 120.70 comes as the first relevant area where bids are expected, ahead of 120.45/50 and 102.20, 120.00. On the upside, 121.00 will remain the main sticking point for bulls.