Markets sentiment stabilized a bit in Asia, following the recovery in US stocks overnight. Commodity currencies are paring some losses while Dollar and Yen are retreating. But so far, the Japanese currency is still the strongest one for the week, backed by overall risk-off sentiment, while Dollar is also firm, except versus Loonie. Euro is currently the worst performing one, followed by Sterling. With the downside breakout in EUR/USD, there's likely more selloff in Euro ahead. Technically, while the pull back in some Yen crosses was deep, USD/JPY is just engaging in very shallow retreat. There is prospect of rally resumption soon, if the pair could draw enough support from 4 hour 55 EMA. Yet the main hurdle is in the long term projection level at 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04. 130 is also a level that's rumored to trigger currency intervention. So, let's see. In Asia, at the time of writing, Nikkei is up 0.61%. Hong Kong HSI is up 1.77%. China Shanghai SSE is up 0.69%. Singapore Strait Times is down -0.18%. Japan 10-year JGB yield is up 0.0005 at 0.251. Overnight DOW rose 0.70%. S&P 500 rose 0.57%. NASDAQ rose 1.29%. 10-year yield dropped -0.08 to 2.826. |
