USD/JPY is down by virtually zero.four% on the day at present
All of the sudden, the chance on rally from in a single day buying and selling seems to be truly fizzling out earlier than we even get into European buying and selling. Asian equities opened with a bang following the good points in Wall St however have now surrendered all of it as most main indices commerce at session lows. For good measure, the Cling Seng index is down by zero.5% at present whereas Chinese language equities are additionally within the crimson.
The Nikkei remains to be zero.four% larger on the day however trades on the lows at present and with Treasury yields additionally sinking to the lows for the day, the Japanese yen is pulling forward of the remainder of the foremost bloc in the intervening time. US 10-year yields are down by four.2 bps to three.017% now because the essential three% threshold is inside attain.
With yields threatening to fall again decrease, the greenback stays below strain on the day as properly. That is seeing USD/JPY now threatening for a transfer in direction of the 200-hour MA (blue line) @ 113.11. A break under that and the near-term bias turns extra bearish earlier than additional assist is then seen at 113.00 after which 112.70.