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16 Jan 2015
USD/JPY heavy again, 116.00 in focus
FXStreet (Bali) - USD/JPY short-lived recovery topped out at 116.55 in Asia, with sellers stepping out now sending the rate towards 116.00 once again, as the Nikkei 225 gives up early gains to currently trade in the red, with falls in the tune of 1.7%.
While some smart money accounts triggered stops loss orders lying sub 116.00 in the NY-Tokyo transition, the rebound has only managed to clean up weak stop loss buy order from those taking the 116.00 breakout earlier, before the underlying bearish momentum resumed, with 115.60 (Dec 16 low) coming rapidly into focus. There is talk of further stops building sub-105.90.
It is worth noting that recent USD/JPY action shows a penetration of closure of price within its daily ichimoku cloud, first time since the upward resolution to a lengthy multi-month range on Aug 8. While some macro accounts may be still emerge finding value on dips, the mounting uncertainty in the new market dynamics post the SNB black swan event, coupled with risk-off plays as a result, seems to point for a conductive environment in favour of Yen purchases near term, even if the prospects of additional easing by the BoJ later on this year should not be forgotten - Yen negative driver -.
While some smart money accounts triggered stops loss orders lying sub 116.00 in the NY-Tokyo transition, the rebound has only managed to clean up weak stop loss buy order from those taking the 116.00 breakout earlier, before the underlying bearish momentum resumed, with 115.60 (Dec 16 low) coming rapidly into focus. There is talk of further stops building sub-105.90.
It is worth noting that recent USD/JPY action shows a penetration of closure of price within its daily ichimoku cloud, first time since the upward resolution to a lengthy multi-month range on Aug 8. While some macro accounts may be still emerge finding value on dips, the mounting uncertainty in the new market dynamics post the SNB black swan event, coupled with risk-off plays as a result, seems to point for a conductive environment in favour of Yen purchases near term, even if the prospects of additional easing by the BoJ later on this year should not be forgotten - Yen negative driver -.