FxWirePro: Yen ignores poor Japan data, remains bid against USD on falling Japanese stocks
USD/JPY is extending the bearish momentum for the third straight session, falling Japanese stocks trigger fresh demand for the yen Nikkei drops -0.64 to 18,204, markets also wary as they await re-opening of the Chinese m…
USD/JPY is extending the bearish momentum for the third straight session, falling Japanese stocks trigger fresh demand for the yen
Nikkei drops -0.64 to 18,204, markets also wary as they await re-opening of the Chinese markets after a holiday
Poor Japan data released earlier ignored by markets, core machine orders fell -3.5% (forecast +3.5%), trade balance came in at a deficit of 326.1 bln yen, following the 108.0 bln yen shortfall in the previous month
Gains in the yen however remain capped by expectations that the Bank of Japan will unveil more stimulus steps as early as this month
Higher U.S. Treasury yields underpinned the dollar, USD stood tall against a basket of currencies in early Asian trading
USD/JPY is currently holding at 119.85, edging slightly higher from session lows at 119.82
Strong support is seen at 119.63 levels, and resistance on the upside is located at 119.85 (cloud top) ahead of 120 (psychological level)
Recommendation: Wait for breaks below 119.60 to go short, target 118.80, stops 120.20
