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Yen The Modest Outperformer In Asia

JPY

JPY the outperformer in the G10 FX sphere overnight, benefitting from the risk tone being tilted to off in Asia. The Nikkei 225 bucked the recent trend, operating on the defensive to shed 1%.

  • Most pointed to a delayed catch up to the move lower in the CSI 300/Hang Seng when it came to the weakness in the 225.
  • Spot USD/JPY last trades just above Y141.60, down 20 or so pips on the day, after showing as low as Y141.44 in Tokyo trade.
  • This comes after Friday’s rally through Y141.50, the top of a bull channel drawn from the Jan 16 high. The break above there reinforced bullish conditions and confirms a resumption of the uptrend. This opens Y142.25 next, the Nov 21 ‘22 high. On the downside, support to watch is at 139.42, the 20-day EMA. A break is required to signal a short-term top.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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