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Trend Signals Still Point North


BLOCK, Red Pack


Corporate Debt Recap, World Bank Exp Wednesday


Resumes Its Downtrend


Corrections Remain Shallow

DOLLAR-YEN: USD/JPY sits 5 pips above neutral levels at Y107.53; the pair has
moved on the back of U.S.-China news rollercoaster, which has driven whipsaws in
risk appetite.
- After a previously documented flurry of tweets re: the state of U.S.-China
talks, we saw a BBG source report suggesting that the U.S. is weighing striking
an FX pact with China as part of a partial deal. The piece helped the rate
return to neutral levels.
- A NYT article stating that U.S. Pres Trump may allow some U.S. firms to resume
supplying Huawei put a fresh bid into USD/JPY, sending it to session high of
Y107.77. The pair has ebbed off the level since, as the FT reported that the
White House is "weighing options to crack down of shipments of contraband goods
from China."
- From a technical point of view, a clean break and consolidation above the
Y107.60 100-DMA would bring the Y108.00 mark into focus. Conversely, bears look
for a retreat towards the support zone at Y106.96-90, which hosts the low of Sep
24, 38.2% retracement of the Aug 26 - Sep 18 rally & the 50-DMA.
MNI London Bureau | +44 203-865-3806 |
MNI London Bureau | +44 203-865-3806 |