US stocks were hammered again overnight and selling continues in Asia. But major currency pairs and crosses are trading in tight range, digesting recent moves. Euro and Sterling are recovering some grounds while Aussie is paring gains. Gold is consolidating below 2k handle but the retreat is shallow. WTI crude oil is holding firm in consolidation above 120. There is little that suggest a change in overall directions in the markets so far and more downside is still in favor for Euro and Pound. Technically, a major focus to us is USD/JPY would break out from recent range of 114.40/116.33. An upside break out is mildly in favor given that the pair is continuously supported by 55 day EMA. However, once the persistent support was taken out firmly, the selling could be intense, and we might see USD/JPY diving towards 110.95 support in rather quick manner. In Asia, at the time of writing, Nikkei is down -1.25%. Hong Kong HSI is down -0.45%. China Shanghai SSE is down -1.99%. Singapore Strait Times is down -0.75%. Japan 10-year JGB yield is up 0.0164 at 0.163. Overnight, DOW dropped -2.37%. S&P 500 dropped -2.95%. NASDAQ dropped -3.62%. 10-year yield rose 0.027 to 1.751. | 