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2 Oct 2013
USD/JPY well below 98.00 amid risk aversion.
FXstreet.com (Athens) – The USD/JPY is trading downwards today amidst a quiet trading session during the Asian trade and due to the “risk-off” sentiment.
USD/JPY downwards due to sharp Nikkei fall, US default; also traders not that excited by Abe’s speech
The USD/JPY has been trading downwards since the opening of the Asian trading session mostly due to the general risk-off environment. Furthermore, investors didn’t seem to be much amused by PM Abe’s yesterday statement regarding the corporate tax, even there was chattering on a potential debate on that. What’s more, US fiscal cliff issue surely assisted to a more or less extent to drag the pair further downwards. However, most of all the above, it seems that the sharp today’s decline of Nikkei (-1.86%), was the key major driver to push downwards the cross, as the Japanese Index and the safe-haven currency are highly negatively correlated.
Technical Outlook on the USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/JPY is inching slowly lower. The market is looking more vulnerable on the downside. The move below 97.76 has increased the risk of further slippage to the 200 day ma at 96.52, the August low at 95.80 and the 95.54 5 month support line.”
USD/JPY downwards due to sharp Nikkei fall, US default; also traders not that excited by Abe’s speech
The USD/JPY has been trading downwards since the opening of the Asian trading session mostly due to the general risk-off environment. Furthermore, investors didn’t seem to be much amused by PM Abe’s yesterday statement regarding the corporate tax, even there was chattering on a potential debate on that. What’s more, US fiscal cliff issue surely assisted to a more or less extent to drag the pair further downwards. However, most of all the above, it seems that the sharp today’s decline of Nikkei (-1.86%), was the key major driver to push downwards the cross, as the Japanese Index and the safe-haven currency are highly negatively correlated.
Technical Outlook on the USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/JPY is inching slowly lower. The market is looking more vulnerable on the downside. The move below 97.76 has increased the risk of further slippage to the 200 day ma at 96.52, the August low at 95.80 and the 95.54 5 month support line.”