 Yen remains generally firm in Asian session today as risk aversion dominates. Selloff in US stocks overnight spilled over to other markets. Poor economic data, manufacturing and employment, raised recession concerns. Additionally, US is taking another step in global trade war, by raising tariffs on EU after WTO ruling on Airbus subsidies. Sentiments will need to look into ISM services today and non-farm payrolls today for rescue. Meanwhile, Yen is currently the strongest one for the week, followed by Euro and then Pound. Australian Dollar is the weakest for the week despite today's recovery, followed by Swiss Franc, and then Canadian. Technically, developments in EUR/JPY and GBP/JPY suggest that recent rebound have completed. Further falls are likely to retest 115.86 and 126.54 lows respectively. Focus in USD/JPY is back on 106.68 support with this week's decline. Break will align with other Yen crosses and target 104.45 low. USD/CAD's strong break of 1.3310 reaffirmed our bullish view that whole rise from 1.3016 is resuming. Focus is back on 1.3382 resistance and break will confirm. AUD/USD is still pressing 0.6677 low. Decisive break will confirm medium term down trend resumption. In Asia, Nikkei is currently down -2.07%. Hong Kong HSI is down -0.46%. Singapore Strait Times is down -0.95%. China is still on holiday. Japan 10-year yield is down -0.017 at -0.183. Overnight, DOW dropped -1.86%. S&P 500 dropped -1.79%. NASDAQ dropped -1.56%. 10-year yield dropped -0.048 to 1.596. |
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