10 Jul 2013
USD/JPY drops through 100.00 handle
FXstreet.com (London) - USD/JPY was down by about 0.60% overnight and has continued lower in European markets.
It is unclear how much China has to do with this, as the Topix Index closed just 0.14% lower suggesting financial markets are perhaps already positioned for a weaker real GDP report next week.
Karen Jones at Commerzbank said the large divergence of the 240 minute RSI does not bode. She said she would allow for a slide back to the base of the cloud circa 98.15. "However in order for the chart pattern to come under pressure we will need to see a break back here. Initial support is offered by the 20 day moving average at 99.37. Below 98.15 will leave the market on the defensive and likely to slide back to 96.75/95.40 en route to the 93.75 recent low."
It is unclear how much China has to do with this, as the Topix Index closed just 0.14% lower suggesting financial markets are perhaps already positioned for a weaker real GDP report next week.
Karen Jones at Commerzbank said the large divergence of the 240 minute RSI does not bode. She said she would allow for a slide back to the base of the cloud circa 98.15. "However in order for the chart pattern to come under pressure we will need to see a break back here. Initial support is offered by the 20 day moving average at 99.37. Below 98.15 will leave the market on the defensive and likely to slide back to 96.75/95.40 en route to the 93.75 recent low."