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31 Aug 2015
USD/JPY plummets off highs, S&P500 sell-off weighs
FXStreet (Bali) - USD/JPY has come under pressure in the early stages of Monday Asia, now at session lows near 121.20 after printing session highs of 121.75 in interbank trade, as S&P500 futures sell-off in response to the Jackson Hole headlines, with the Fed keeping hopes alive for a rate hike in Sept.
US NFP holds key, risk aversion back on?
Ahead of a critical week for the interest of traders, in which Friday's US Non-Farm Payrolls may be interpreted as the last piece of the jigsaw to understand the real possibilities of a Fed rate hike in Sept, a sense of risk-aversion has seen the Yen benefit the most, while the Australian Dollar has suffered the most severe losses since the get go.
USD/JPY technicals
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The daily chart shows that the price has recovered above its 200 DMA, around 121.00, whilst the technical indicators continue correcting higher from extreme oversold levels, but remain well below their mid-lines."
"The 100 DMA stands at 122.80, becoming a critical longer term resistance. In the 4 hours chart the technical picture is clearly bullish, with the technical indicators heading north, despite being near overbought readings, which means additional recoveries should be expected, particularly if the pair regains the 122.00 figure", Valeria adds.
US NFP holds key, risk aversion back on?
Ahead of a critical week for the interest of traders, in which Friday's US Non-Farm Payrolls may be interpreted as the last piece of the jigsaw to understand the real possibilities of a Fed rate hike in Sept, a sense of risk-aversion has seen the Yen benefit the most, while the Australian Dollar has suffered the most severe losses since the get go.
USD/JPY technicals
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The daily chart shows that the price has recovered above its 200 DMA, around 121.00, whilst the technical indicators continue correcting higher from extreme oversold levels, but remain well below their mid-lines."
"The 100 DMA stands at 122.80, becoming a critical longer term resistance. In the 4 hours chart the technical picture is clearly bullish, with the technical indicators heading north, despite being near overbought readings, which means additional recoveries should be expected, particularly if the pair regains the 122.00 figure", Valeria adds.