20 Aug 2013
USD/JPY eyes 78.6 Fib
FXstreet.com (Barcelona) - USD/JPY is offering a safe haven play while Equity markets in EM Asia suffered a brutal sell off.
USD/JPY is up in London from overnight losses where the pair fell to 97.20 having started yesterday NA above 98.00. “The Jakarta composite plunge another 5% at one point, adding to yesterday’s 5.7% drop, and wiping out a year’s worth of gains. The rest of Asia is also a sea of red, with the rest of South East Asia also underperforming the region. USDIDR dropped 1.8% to 10750, highest since April 2009, while USDINR soared ~1% to an all time high of 64.12 shortly after the open. The Antipodeans have also weakened, with NZD (-1.5% to $US0.7988) the second worst performing currency of the day after IDR, after the RBNZ announced that LVR restrictions on banks will commence on Oct 1, and Governor Wheeler resumed his jawboning against the NZD, labeling the currency “overvalued”. We didn’t think the RBA Minutes was particularly dovish, but it seems like the AUD was caught up in the general currency sell off today, down ~70pips from the opening level, to $US0.9050. In contrast, ‘safe haven’ JPY is up +0.6% to 97.40”, said Alvin Pontoh, Asia-Pacific Macro Strategist, FX & Rates Strategy at TD Securities.
USD/JPY eyes 95.42 Support area
The 78.6% Fibonacci retracement of the June to July move at 95.42 is eyed. Below it lies the five month support line at 94.84. The 20 dma is 97.93, the 50 dma is 98.33 and the 200 dma is 94.04. RSI (9) reads 47.36. Supports are ascending from 96.40, 96.88, 96.98, 97.19. Spot is currently 97.55 while resistances are 97.88, 98.13, 98.30 and 98.48.
USD/JPY is up in London from overnight losses where the pair fell to 97.20 having started yesterday NA above 98.00. “The Jakarta composite plunge another 5% at one point, adding to yesterday’s 5.7% drop, and wiping out a year’s worth of gains. The rest of Asia is also a sea of red, with the rest of South East Asia also underperforming the region. USDIDR dropped 1.8% to 10750, highest since April 2009, while USDINR soared ~1% to an all time high of 64.12 shortly after the open. The Antipodeans have also weakened, with NZD (-1.5% to $US0.7988) the second worst performing currency of the day after IDR, after the RBNZ announced that LVR restrictions on banks will commence on Oct 1, and Governor Wheeler resumed his jawboning against the NZD, labeling the currency “overvalued”. We didn’t think the RBA Minutes was particularly dovish, but it seems like the AUD was caught up in the general currency sell off today, down ~70pips from the opening level, to $US0.9050. In contrast, ‘safe haven’ JPY is up +0.6% to 97.40”, said Alvin Pontoh, Asia-Pacific Macro Strategist, FX & Rates Strategy at TD Securities.
USD/JPY eyes 95.42 Support area
The 78.6% Fibonacci retracement of the June to July move at 95.42 is eyed. Below it lies the five month support line at 94.84. The 20 dma is 97.93, the 50 dma is 98.33 and the 200 dma is 94.04. RSI (9) reads 47.36. Supports are ascending from 96.40, 96.88, 96.98, 97.19. Spot is currently 97.55 while resistances are 97.88, 98.13, 98.30 and 98.48.