USD/JPY: BIG bear breach; full load down as downside opens up

By FXStreet FXStreet (Guatemala) – After a non-convincing time on the 121 handle, capped at 121.62 at the 200 SMA on the hourly chart, there has been a major breach in USD/JPY.

The downside is now wide open below the March lows, en- route to the 116.15/115.85 2015 low and the recent low, depending. USD/JPY breached the key 120.70 200 DMA overnight.

USD/JPY lower on negative global outlook and uncertainty

The stability that appeared last week after Black Monday seems to be dissipating as we progress from the start of September, fueled by ongoing uncertainty and poor performances in global equities, commodities and notably, EM economies. We had IMF’s Lagarde say that global growth will be moderate and weaker than expected last July and also said that Asia growth would be weaker than expected and lower commodity prices would persist.

China is viewed as problem area, and last night, after a weak open on Tokyo, the Chinese PMI’s pointed to further slow downs in the economy, The Chinese bourses opened with a bearish gap continued lower. However, at the end of the day, the largest stocks in China as recorded on the SSE50 was up around 1.0% due to Chinese intervention …read more

Source:: FX Street