 Yen surges broadly this week and remains generally firm in Asian session. Pull back in treasury yield is seen as a factor driving the Yen higher. Yet, the lack of selling in Yen despite strong risk appetite, with NASDAQ extending record run, is something to note. it might be an early hint of risk pull back and we'd find out pretty soon. Staying in the currency markets, Dollar is currently trying to recover some ground but stays the weakest for the week. Commodity currencies are generally softer in Asia together with Sterling. Technically, Yen's comeback is rather massive. USD/JPY's break of 108.08 support suggests that rebound from 105.98 has possibly completed at 109.85. EUR/JPY's touching of 121.84 minor support suggests short term topping at 124.43. 136.95 minor support in GBP/JPY is a level to watch to confirm short term topping. EUR/GBP is back pressing 0.8866 minor support and break will indicate near term bearish reversal. So, Sterling is rather mixed, caught between Yen and Euro. In Asia, currently, Nikkei is down -0.46%. Hong Kong HSI is up 1.66%. China Shanghai SSE is up 0.58%. Singapore Strait Times is up 1.30%. Japan 10-year yield is down -0.0247 at 0.021. Overnight, DOW rose 1.7% to 27572.44. S&P 500 rose 1.20% to 3232.39. NADSAQ rose 1.13% to 9924.74, new record high. 10-year yield dropped -0.020 to 0.884. |
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