Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

YEN: The JPY has moved off of worst levels, and now trades slightly stronger vs.
USD on the day, with USDJPY at 106.65, EURJPY at 131.30 & AUDJPY at 83.85. Well
trodden political scandal in Japan seems to be garnering more traction as fresh
details came to light over the w/end & could undermine PM Abe & FinMin Aso.
- For USDJPY hesitation and a lack of follow through on recent '18 lows is less
than ideal for bears who are currently focused on 98.95-101.15. In saying that,
resistance layers remain with bulls needing a close above 107.19, with 107.00
capping the pair in early dealing this week.
- For EURJPY the failure to gain traction above the 200-DMA & the 21-DMA capping
resulted in a sell-off and sees immediate focus on 129.33-53 where 2018 lows &
the 200-WMA are noted. Bulls still need a close above 132.18 to ease bearish
pressure and shift initial focus to 133.05-134.16 (55 & 100-DMAs).
- AUDJPY's '18 lows lacked follow through last week leaving a double daily
bottom in place. Bulls take comfort in Friday's rally & close above resistance
levels that sees focus now on the close above 84.20. Bears now need a close
below 83.32 to ease renewed bullish pressure.
MNI London Bureau | +44 0203-865-3809 |