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US TSYS SUMMARY

Substantial Further Progress Not Yet Reached

USDCAD TECHS

Runs Counter to Trend

AUDUSD TECHS

Fed Bounce Stops Short

EURJPY TECHS

Bearish Trend Conditions

USDJPY TECHS

Bearish Threat

DOLLAR-YEN
DOLLAR-YEN: USD/JPY has posted a leg lower after U.S. Senate passed a bill aimed
at supporting Hong Hong protests. The legislation may further complicate the
meandering U.S.-China trade talks, which inspires a modicum of risk aversion.
- The rate last deals at Y108.43, 11 pips worse off. It has just breached the
channel support drawn off the Aug 26 low, which limited losses on Tuesday. The
next downside target is provided by the 50-DMA/Nov 14 trough at Y108.27/24 and
below there would open the Nov 1 low of Y108.89. Bulls need to return into the
channel before attempting a move at the Y108.98 200-DMA.
- To recap, trade war uncertainty & Hong Kong tensions weighed on the pair early
doors on Tuesday, but this dissipated as European equities kicked off on the
front foot. The rate then slid through the rest of the day, with a knee-jerk
higher seen as a BBG story suggested that the U.S. and China may "explore tariff
reliefs using failed proposals from May" but U.S. Pres Trump promptly poured
cold water on resulting enthusiasm.
- Looking into the local docket, we have trade balance data coming up later
today with flash Jibun Bank m'fing PMI due on Friday.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com