FXstreet.com (San Francisco) - After a period of triangular consolidation, USD/JPY is breaking to new 7-day lows in late Asia, having so far today extended as low as 77.99 and threatening to slide farther. Price, however, continues to trade above the 61.8% Fibonacci retracement of advance from 77.42 to 78.85.
The move comes amid risk aversion following Spain’s ratings downgrade and weak machinery orders from Japan. Also, “JPY traders are looking to test the Japanese authorities with USD/JPY falling back to Y78 ahead of the G7 meeting today in Japan,” explains the Easy Forex Team. “While constant Jawboning has slowed the Yen accent we are still at historically high levels.”
Regional bourses are mixed, with Japan’s Nikkei down 40.73 points at 8,555.50. Australia’s ASX is currently down less than a point at 4,490.40, while Hong Kong’s Hang Sen is quoted at 20,967.00, up 47.40 points on the day.
The move comes amid risk aversion following Spain’s ratings downgrade and weak machinery orders from Japan. Also, “JPY traders are looking to test the Japanese authorities with USD/JPY falling back to Y78 ahead of the G7 meeting today in Japan,” explains the Easy Forex Team. “While constant Jawboning has slowed the Yen accent we are still at historically high levels.”
Regional bourses are mixed, with Japan’s Nikkei down 40.73 points at 8,555.50. Australia’s ASX is currently down less than a point at 4,490.40, while Hong Kong’s Hang Sen is quoted at 20,967.00, up 47.40 points on the day.
