USD/JPY: dumped to 200 1hr sma under dark-risk-sentiment-cloud

USD/JPY is trading at 103.55, down -0.62% on the day, having posted a daily high at 104.65 and low at 103.34.

USD/JPY had been trading at the highest levels near 104.65 since late July before selling off over a big figure overnight. "Softer oil prices and slightly lower Treasury yields, combined with weak Chinese data that posted the first y/y fall in exports in a while, have reversed the rise in USD/JPY while leaving global risk sentiment under a bit of a cloud," explained Kit Juckes, economist at Societe Generale, "Not enough of a cloud, however, to de-rail the longer-term change in direction for Treasury yields which is the basic building block of the dollar's rally.  We still favour longs in USD/JPY in anticipation that the rising trend in US yields continue to dominate FX trend.

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 USD/JPY levels

Spot is presently trading at 103.56, just above the 200 sma on the 1hr sticks located at 103.32, and next resistance can be seen at 103.64 (Hourly 100 SMA), 103.78 (Hourly 20 EMA), 103.99 (Daily Classic PP), 104.20 (Daily Open) and 104.20 (Monthly High). Next support to the downside can be found at 103.49 (Daily Classic S1), 103.45 (Daily 100 SMA), 103.34 (Daily Low), 200 sma on the 1hr sticks located at 103.32, 103.29 (Hourly 200 SMA) and 103.28 (Yesterday's Low).