USD/JPY pressures mount in Tokyo trade; can 120 hold?

By FXStreet FXStreet (Guatemala) – USD/JPY has continued on the offer with supply hitting the table as the Nikkei follows on from the bearish display in equities on Wall Street earlier.

Wall Street went against the grain in volatile market conditions and closed in the red while the Nikkei is now -2.9% at time of writing following suit.

Safe haven bids go through the euro, 20 pips bid, and into the Yen at the start of Tokyo as a result. USD/JPY was drifting from 120.30 minutes before the open and dropped down 120.06 bids in the five minute sticks when Tokyo desks commenced.

Prior to markets in Europe overnight, the Asian session yesterday was a favourable one for the major with better risk appetite when the Yen was sold off due to Abe announcing that they will lower the corporate tax rate by at least 3.3% next year. However, those profits in both the Nikkei and Yen have now been swept off the table. After the RBNZ setting a bearish outlook for Asia, now we await China opening, data in CPI and PPI from them for August and Aussie jobs data that all could continue to rock the …read more

Source:: FX Street