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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JPY
Today's risk off has been much more evident in the equity space relative to FX trends. USD/JPY has been supported so far on dips. We were last 149.60/65, around 0.20% stronger in USD terms. Earlier lows were at 148.88.
- On a AUD and NZD cross basis yen is around flat to a touch weaker. AUD/JPY was last 97.40/45, up from earlier lows of 96.61. The RSI (14) is at 16, so quite low by historical standards.
- For NZD/JPY we are near 89.05, also up from earlier lows (88.37). The RSI (14) is more stretched to the downside for this pair, near 12. This is also very stretched by historical standards, see the chart below.
- Such oversold conditions may be aiding consolidation in these pairs, even amidst sharp equity losses.
- All the major Asia Pac markets are deeply in the red. Tech headwinds amid earnings concerns and US slowdown fears are driving sentiment in this space.
- Still, AUD/JPY and NZD/JPY crosses are not low in spot terms relative to history. If a global economic slowdown is unfolding it would be difficult to argue we have seen a trough in these pairs.
Fig 1: NZD/JPY RSI (14), Quite Oversold By Historical Standards
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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