USD/JPY: bears stay in control despite stock market reversal

EUR/JPY: headed to a test of the 200-D SMA, weighing on USD/JPY.
USD/JPY: will USD/JPY eventually turnaround on stocks bounce?

Ross J Burland FXStreet

USD/JPY has been offered once again back below the 107 handle with recovery attempts in the US session capped by the ascending 100-he SMA at 107.01. USD/JPY Currently, USD/JPY is trading at 106.87, down -0.74% on the day, having posted a daily high at 107.79 and low at 106.64.

The yen had flourished in the woes of yesterday's stock markets. After the FOMC minutes that made the case for a faster pace of rate hikes, investors got out of Wall Street figuring higher rates are never a positive for borrowers and the benchmarks subsequently crashed.

Bear stay in control

However, there has been a turn around in stocks today yet the bears have silenced the bulls and the DXY is just having one of those days, trodden down to a low of 89.63 while US yields have also been sent crashing down, with the 10-yr just above holding on to the 2.90's%. EUR/JPY has also been a factor at play, threatening an attack below the 200-D SMA, so far intact.

USD/JPY levels

Analysts at Scotiabank run with the assessment that USD/JPY's short-term technicals remain bearish:

"USD/JPY softness below minor, short-term trend support over the past 24 hours suggests a moderation in the USD uptrend.... a break here targets 106.45/50. A low close today (potential “dark cloud cover” on the daily candle chart) adds to the soft technical undertone for this market."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.