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21 Aug 2015
USD/JPY: watch if 122.80 breaks on Global risk tensions
FXStreet (Guatemala) - USD/JPY is currently trading at 123.41 with a high of 123.50 and a low of 123.35.
USD/JPY is opening the last session in Tokyo for the week with Asian equities opening lower post the poorest performance in the S&P 500 since February 2014, supporting the Yen, as markets get in to risk-off mode in respect of the outlook from the Chinese economy and risk weighing on global equity markets. This coupled with the dovish and mixed FOMC minutes leaves the downside vulnerable in the major.
Global risks supporting Yen
At the same time, Greek PM Tsipras resigned earlier and leaves an air of uncertainty over Greece yet again and more recently it has been reported that ,in an escalation of the tense situation in the region, North and South Korea have exchanged fire over their heavily fortified border, as explained by the South Korean Defense Ministry.
The Yen was bid all the way overnight and has opened in Tokyo 10 pips stronger while there are rumours of non-manufacturing corporate interest and orders at 123 supporting the major in a range bound outlook between there and 125 for the medium term. We await the Nomura/JMMA Manufacturing Purchasing Manager Index as the last data for the week and will monitor the ongoing tensions in Korea.
USD/JPY downside exposed if below 122.80
Technically, for the upside, the June peak at 125.86 stands as a key technical level on a break of the 125 handle, through 125.20. This comes in ahead of the May 1997 high at 127.48. To the downside, 123 guards the 50% retracement at 122.85. Below there opens avenues to the 121.50 2015 uptrend.
USD/JPY is opening the last session in Tokyo for the week with Asian equities opening lower post the poorest performance in the S&P 500 since February 2014, supporting the Yen, as markets get in to risk-off mode in respect of the outlook from the Chinese economy and risk weighing on global equity markets. This coupled with the dovish and mixed FOMC minutes leaves the downside vulnerable in the major.
Global risks supporting Yen
At the same time, Greek PM Tsipras resigned earlier and leaves an air of uncertainty over Greece yet again and more recently it has been reported that ,in an escalation of the tense situation in the region, North and South Korea have exchanged fire over their heavily fortified border, as explained by the South Korean Defense Ministry.
The Yen was bid all the way overnight and has opened in Tokyo 10 pips stronger while there are rumours of non-manufacturing corporate interest and orders at 123 supporting the major in a range bound outlook between there and 125 for the medium term. We await the Nomura/JMMA Manufacturing Purchasing Manager Index as the last data for the week and will monitor the ongoing tensions in Korea.
USD/JPY downside exposed if below 122.80
Technically, for the upside, the June peak at 125.86 stands as a key technical level on a break of the 125 handle, through 125.20. This comes in ahead of the May 1997 high at 127.48. To the downside, 123 guards the 50% retracement at 122.85. Below there opens avenues to the 121.50 2015 uptrend.