USD/JPY: early offers in Tokyo pressure 120.00 support

By FXStreet FXStreet (Guatemala) – USD/JPY has been testing the downside in the Tokyo open and has penetrated the 120 handle again, after an up-day overnight in early US, scoring through the hourly 200 SMA, meeting some supply and back to test again, but now failing in Asia

We had another rock and roll day overnight, with the ECB as the pacemaker. The announcements were heavily dovish and remarks were extremely telling of what the economic picture has in store, which in many aspects of possible outcomes support the Yen.

A flight to the US to support USD/JPY?

On the other hand, and on further speculation, should the Fed have a harder time of things as a result of the ECB’s recent action and not hike rates, along with a continued slowdown in China, less momentum in the global economic recovery and a subsequent flight to safety with increased outflows from EM’s, these impacts could bolster the US stock markets, as we have seen before, and support a higher USD/JPY.

All in all, we are in uncertain times and this has been supporting the Yen of late. S&P futures are down 0.40% at time of writing, validating the safe haven role …read more

Source:: FX Street