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2 Sep 2015
USD/JPY pressured hard to key 119.20 support in early Asia
FXStreet (Guatemala) - Following along the bearish trend and major breach of the 120.70 200 DMA, with yet further bearish closes on Wall Street and in Global equities, USD/JPY is hit again and has taken out US session lows.
While not very convincing on the major recovery in the greenback after Black Monday last week, when it found room for itself on the 121 handle, albeit very temporarily and capped at 121.62, or the 200 SMA on the hourly chart, there has been a major breach in USD/JPY in European and US markets and the theme continues to test last week's support of the hourly 20/50 SMA golden cross-over support at 119.20 in early Asia.
USD/JPY down on negative US session
The US session with the S&P 500 down 2.95%, to $1914, Dow -2.83% at 16059.42 and NASDAQ - 3.09% at 4142.63, while US 10-year yields dropped down to 2.15% by 6.5 basis points, denting the greenback and accompanied by the worst result in ISM manufacturing for the US since May 2013 that arrived 51.1 vs 52.56 expected and 52.7 prev, that also put further downside pressure on USD/JPY in the US session.
USD/JPY started out on back-foot in Europe
This was all against a backdrop of a poor run in the European session's equities that all closed much lower, FTSE -3.0%, DAX -2.6%, CAC -2.6%, IBEX -2.8%. As a result, USD/JPY collapsed and was also aided by poor manufacturing in Europe.
Eye's on Asian equity performances for USD/JPY direction
We now look ahead to Asian equities after the largest stocks in China, as recorded on the SSE50, ended up around 1.0% due to Chinese intervention propping up the largest companies while the composite closed -1.2%. Nikkei ran-up big losses into the closing hour yesterday and finished 450 ticks down on the lows.
USD/JPY critical downside levels
The downside in USD/JPY 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 downside levelsThe downside levels to watch now are 119.20 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.
Seperately, Stéphanie Aymes, Head of Technical Analysis at Societe Generale, sees a retest of 118.20 in USD/JPY as a likely outcome.
While not very convincing on the major recovery in the greenback after Black Monday last week, when it found room for itself on the 121 handle, albeit very temporarily and capped at 121.62, or the 200 SMA on the hourly chart, there has been a major breach in USD/JPY in European and US markets and the theme continues to test last week's support of the hourly 20/50 SMA golden cross-over support at 119.20 in early Asia.
USD/JPY down on negative US session
The US session with the S&P 500 down 2.95%, to $1914, Dow -2.83% at 16059.42 and NASDAQ - 3.09% at 4142.63, while US 10-year yields dropped down to 2.15% by 6.5 basis points, denting the greenback and accompanied by the worst result in ISM manufacturing for the US since May 2013 that arrived 51.1 vs 52.56 expected and 52.7 prev, that also put further downside pressure on USD/JPY in the US session.
USD/JPY started out on back-foot in Europe
This was all against a backdrop of a poor run in the European session's equities that all closed much lower, FTSE -3.0%, DAX -2.6%, CAC -2.6%, IBEX -2.8%. As a result, USD/JPY collapsed and was also aided by poor manufacturing in Europe.
Eye's on Asian equity performances for USD/JPY direction
We now look ahead to Asian equities after the largest stocks in China, as recorded on the SSE50, ended up around 1.0% due to Chinese intervention propping up the largest companies while the composite closed -1.2%. Nikkei ran-up big losses into the closing hour yesterday and finished 450 ticks down on the lows.
USD/JPY critical downside levels
The downside in USD/JPY 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 downside levelsThe downside levels to watch now are 119.20 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.
Seperately, Stéphanie Aymes, Head of Technical Analysis at Societe Generale, sees a retest of 118.20 in USD/JPY as a likely outcome.