USD/JPY: yen picks up the risk off bid despite positive Nikkei 225
Currently, USD/JPY is trading at 112.08, down -0.22% on the day, having posted a daily high at 112.36 and low at 112.07.
USD/JPY is turning south, capped at 112.46 overnight highs with markets unsure and mixed post the performance and turbulence in previous sessions. The main events were around Draghi and Yellen speaking with a little bit of vice chairman of the Fed Fischer.
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The comments coming from Central Bankers are taking te spotlight this week with a lack of key fundamental calendar. Yellen was less hawkish than expected, and Fischer warned of risk aversion. Draghi gave the euro a massive boost with his rhetoric and thus the dollar was on rocky ground. The yen was driven on the following, shaping its upside in today's open in Tokyo despite a marginally positive open for the Nikkei 225:
- S&P 500 down 0.8% to 2,419
- Dow Industrials off 99 points to 21,311
- Technology stocks lost 1.7% for biggest decline in market; all but one stock in S&P 500 Tech lower except for FIS
- Financials only advancing group, up 0.5%
- 10-year Treasury yield up more than 3 bps
- VIX jumps 12% to 11.1
The next risks are with the Central Bank governors, Mark Carney, Governor, Bank of England, Mario Draghi, President, European Central Bank, Haruhiko Kuroda, Governor, Bank of Japan and Stephen Poloz, Governor, Bank of Canada all speaking on a panel at the investment and growth in advanced economies in Sintra, Portugal. During two days of sessions and panels, approximately 150 central bank governors, academics, financial journalists and high-level financial market representatives will exchange views on current policy issues and discuss the chosen topic from a longer-term perspective.
USD/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that the price continues developing above its 100 and 200 SMAs, but also that technical indicators are beginning to retreat after nearing overbought levels. "The immediate support comes at 112.00, the 38.2% retracement of its April/May bullish run, and the positive tone will persist as long as the level contains intraday declines. Below it, however, the risk will turn clearly towards the downside.