USD/JPY in neutral at key level on 121 handle

By FXStreet FXStreet (Guatemala) – USD/JPY continues to stabilise after yesterday’s open in Asia and as we progress through the US session the price remains within the vicinity of the downside on the 121 handle, supported by the 50 SMA on the hourly chart at 121.12.

The Yen should remain robust in times of uncertainty. There is also a great deal at stake in respect to data releases and the Fed, while China continues to lurk in the background and subsequent negative implications for Global growth weighs on USD/JPY and stocks.

USD/JPY and equity market correlation

The S&P 500 Sep futures are -0.70% with the index opening down 12 points today and is now currently -0.5% at time of writing. This follows the Shanghai composite that closed 2.5% and the Nikkei down more than 1%, while the FTSE was out, but the rest of the European bourses were also down, notably the Dax opening -0.9% – all Yen supportive

USD/JPY and key US data week

This week is all about the US data and lead up to the middle of the month FOMC two-day meeting with the Fed decision taking place in the 17th. As markets start to price in a potential rate hike …read more

Source:: FX Street