25 Oct 2013
USD/JPY falls apart on Nikkei heavy sell off, highest Shibor since July
FXstreet.com (Athens) – The USD/JPY has been trading under heavy pressure and well under its 200-daily SMA (97.32) since the start of the Wellington trading session, but exactly at 3:00 GMT hours, it fell apart below 97.00 area.
USD/JPY tumbles on Nikkei collapse, China’s 7-day Shibor up 140bps on the week
The USD/JPY has been under heavy pressure since the early Wellington opening trading session, but exactly at the 3:00 GMT it failed to sustain the 97.00 handle, as Nikkei fell also sharply downwards. Reading between the lines. we could point out that market participants should take upon deep consideration the fact that the cross fell sharply in tandem with the Nikkei index (closed down by 2.75%), when the PBoC mentioned through news wires that “new rate to further promote interest rate liberalization", and to be more precisely, at the exact same time, as China fixed the 7-days Shibor at 4.89pct (up 140bps on the week). Nevertheless the USD/JPY is still well bid around the 97.00 area.
Technical Aspects on USD/JPY
Emmanuel Ng of OCBC Bank mentions “that amid still suppressed US yields, the USD/JPY remained heavy on Thursday and we continue to pay attention to the 200-day MA (97.35). Any sustained breach of this level may imply that the weak dollar narrative continues to gain traction and would pave the way to 97.00 and then 96.55.”
USD/JPY tumbles on Nikkei collapse, China’s 7-day Shibor up 140bps on the week
The USD/JPY has been under heavy pressure since the early Wellington opening trading session, but exactly at the 3:00 GMT it failed to sustain the 97.00 handle, as Nikkei fell also sharply downwards. Reading between the lines. we could point out that market participants should take upon deep consideration the fact that the cross fell sharply in tandem with the Nikkei index (closed down by 2.75%), when the PBoC mentioned through news wires that “new rate to further promote interest rate liberalization", and to be more precisely, at the exact same time, as China fixed the 7-days Shibor at 4.89pct (up 140bps on the week). Nevertheless the USD/JPY is still well bid around the 97.00 area.
Technical Aspects on USD/JPY
Emmanuel Ng of OCBC Bank mentions “that amid still suppressed US yields, the USD/JPY remained heavy on Thursday and we continue to pay attention to the 200-day MA (97.35). Any sustained breach of this level may imply that the weak dollar narrative continues to gain traction and would pave the way to 97.00 and then 96.55.”