11 Jan 2016
USD/JPY busting down the hatches below 117
FXStreet (Guatemala) - USD/JPY has shown an early offer below the 117 handle today at the start of Asian trading, underpinning the risk-off mood and perhaps a prelude to what is to continue this week?
The Yen is the top performer as markets open 2016 as how perhaps 2015 should have ended. The nervousness around China was perhaps being stored up until the storage tanks could not handle the pressures any longer, and investors are fleeing from the scenes and are looking for a safe havens, underpinning the Japanese currency.
The weekend news was all about China, from what Kit Juckes, economist at Societe Generale pointed out in the FT, to the actual inflation data from China that albeit being better than expected, still tells the story of the ongoing battle that indeed China's is having with inflation and a slightly better than expected result should be taken as a positive, which clearly it hasn't with the Aussie also hitting the skids in early Asia, already down 0.30%.
USD/JPY levels
Technically, 116.16, the low set in August 2015 is well in sigh. Markets do not usually move in straight line, but we are in unprecedented times in respect to the Chinese crisis and a move back to the 114.00/113.95 zone cannot be ruled out with a break of the weekly 100 SMA and ahead of the base of the weekly cloud at 113.47.
The Yen is the top performer as markets open 2016 as how perhaps 2015 should have ended. The nervousness around China was perhaps being stored up until the storage tanks could not handle the pressures any longer, and investors are fleeing from the scenes and are looking for a safe havens, underpinning the Japanese currency.
The weekend news was all about China, from what Kit Juckes, economist at Societe Generale pointed out in the FT, to the actual inflation data from China that albeit being better than expected, still tells the story of the ongoing battle that indeed China's is having with inflation and a slightly better than expected result should be taken as a positive, which clearly it hasn't with the Aussie also hitting the skids in early Asia, already down 0.30%.
USD/JPY levels
Technically, 116.16, the low set in August 2015 is well in sigh. Markets do not usually move in straight line, but we are in unprecedented times in respect to the Chinese crisis and a move back to the 114.00/113.95 zone cannot be ruled out with a break of the weekly 100 SMA and ahead of the base of the weekly cloud at 113.47.