USD/JPY bears in control, down to test Sep 29 112.22 low again


USD/JPY is following on from the European (late) performance after USD/JPY fell from 112.70 to 111.99 in late London, breaking 112.40 where a pivot point resided.

Having climbed back from 112 the figure to 112.4, bears are pressuring again in Tokyo while Fed's Kapaln has been hitting the wires:

"Waiting too long to raise rates may leave the Fed behind the curve, boost odds of a recession."

Markets whippy as the context of speech by the Catalonian regional president was digested - ANZ

Meanwhile, and as for US yields, the US 10yr treasury's fell from 2.37% to 2.32% before steadying at 2.34% overnight. There was not an obvious catalyst although markets were somewhat jittery over Puigdemont's speech that has plunged Catalonia deeper into uncertainty, for now at least. However, it should have calmed nerves in the short term investing arena. 

Technically, Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that the price bounced from a key support, the 23.6% retracement of its September rally, but ended the day below its 100 SMA:

"Technical indicators have managed to recover some ground, but hold within bearish territory, leaning the scale towards the downside. The pair is anyway 20 pips away from its comfort zone around 112.50, diminishing the relevance of the bearish extension towards fresh 2-week lows. If the price, however, is unable to recover beyond 112.50 and attempts another bearish run, will likely end up breaking lower, towards the 111.60 price zone" Valeria explained further. 

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