24 Aug 2015
USD/JPY hammered to multi-month lows near 119.50
FXStreet (Mumbai) - The USD/JPY pair remains heavily offered ahead of the US open, as markets price-in another crash in the US stocks tracking its global peers, further fuelling fresh round of JPY buying amid escalating risk-off trades.
USD/JPY hits 3-month lows at 119.56 levels
Currently, the USD/JPY pair trades nearly 2% lower at 119.70, quickly retreating from fresh three-month lows reached at 119.56. The major 2 big figures and remains submerged into losses as the yen continues to enjoy the gains emerging from increased appeal for safe-havens amid global sell-off – equities as well as commodities.
Chinese stock markets collapsed 9% on Monday and the selling panic has spread across the globe, with losses suffered across the board on stocks, commodities and carry trades pairs.
According to the CFTC and Rabobank's research, the level of JPY shorts eased last week as JPY funded carry trades were reversed and investors sought out safe-haven assets. Net USD longs have edged lower. On the back of current market turmoil, speculation of a September Fed policy move is being pared back.
USD/JPY Technicals
On daily charts, the major seems to have given a rounding top breakout to the downside with further declines likely below 120 levels. The pair continues to trade below most moving averages including the 200-DMA at 121.04 levels while the RSI at 20.35, heading towards the oversold territory with further downside moves likely.
To the upside, the next resistance is located 121.58 (Jul 7 High) levels and above which it could extend gains 121.93 (Today’s High) levels. To the downside immediate support might be located at 119.56 (Today’s Low) below that at 119.22 (May levels).
USD/JPY hits 3-month lows at 119.56 levels
Currently, the USD/JPY pair trades nearly 2% lower at 119.70, quickly retreating from fresh three-month lows reached at 119.56. The major 2 big figures and remains submerged into losses as the yen continues to enjoy the gains emerging from increased appeal for safe-havens amid global sell-off – equities as well as commodities.
Chinese stock markets collapsed 9% on Monday and the selling panic has spread across the globe, with losses suffered across the board on stocks, commodities and carry trades pairs.
According to the CFTC and Rabobank's research, the level of JPY shorts eased last week as JPY funded carry trades were reversed and investors sought out safe-haven assets. Net USD longs have edged lower. On the back of current market turmoil, speculation of a September Fed policy move is being pared back.
USD/JPY Technicals
On daily charts, the major seems to have given a rounding top breakout to the downside with further declines likely below 120 levels. The pair continues to trade below most moving averages including the 200-DMA at 121.04 levels while the RSI at 20.35, heading towards the oversold territory with further downside moves likely.
To the upside, the next resistance is located 121.58 (Jul 7 High) levels and above which it could extend gains 121.93 (Today’s High) levels. To the downside immediate support might be located at 119.56 (Today’s Low) below that at 119.22 (May levels).