USD/JPY: Major bearish turnaround post China GDP

By FXStreet FXStreet (Bali) – USD/JPY saw an initial pop higher on the neutral Chinese Q4 2015 GDP, which came bang on expectations at 6.8%, first printing a session high of 117.70 before reverting course quite sharply, last at 117.40s, approaching session lows of 117.32.

Risk off returns post China’s GDP

The turnaround in spot USD/JPY comes as stocks come under pressure (both Shanghai and Nikkei 225 are going through an aggressive round of selling), leading US 30-YR Bonds to be in demand and causing SP500 futures to come off highs, last at +0.45%. Oil and copper, two commodities being annihilated in recent times, are also selling off, making the current environment since the Chinese GDP print a textbook risk off phase.

USD/JPY technicals

Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: “The pair maintains its negative tone, as in the 1 hour chart, the price develops well below its 100 and 200 SMAs, while the technical indicators lack directional strength within neutral territory. In the 4 hours chart, the technical indicators have turned sharply lower after failing to overcome their mid-lines, as the price continues developing well below a strongly bearish 100 SMA, supporting the shorter term view and favoring a new leg …read more

Source:: FX Street