USD/JPY is currently trading at 119.13 with a high of 122.04 and a low of 116.14.
USD/JPY has made a come back and keeps edging higher on the 119 handle now. The major has been under offer on the back of risk aversion from global investors while China creates incredible turmoil of the uncertainty of potential catastrophic implications for global markets as the worlds largest consumer continues to break down.
USD/JPY's next move could be on Lockhart
The next major event to take place today will be Fed's Lockhart making a speech. On the back of the negativity around China and since his last hawkish rhetoric, we will be monitoring his tone this time around to see if he reverts back to a more dovish tone, mirroring the most recent minutes for the FOMC.
Greenspan called in a "conundrum"
Certain factors may be mentioned in respect of timings of a rate hike, or whether it is less appropriate to even consider hiking in a deflationary global environment with a slower global growth outlook.
Moreover, more than half the components of the consumer price index have declined in the past six months. Prices of commodities are through the floor at the same time that market expectations of inflation are now pricing in less than 2 percent annual inflation several years out.
All of this, while there is the continued potential for flight of safety to the strength of the US dollar, could just lead to the Fed needing to reverse back to zero again at some stage in the future and as Greenspan once said, this is the Fed's "conundrum".
Technically, USD/JPY's downside is wide open on fundamentals
With so many uncertainties, USD/JPY bulls are likely to continue to face headwinds on any recovery attempts back towards the recent highs and the Yen will continue to garner strength on risk aversion coupled with a reverse of sentiment in the Federal Reserve. Technically the levels to watch out for on the downside should the aforementioned lows give way, 115.84 is exposed ahead of 112.56, 110.00 and back to 105.18. Near term rallies are likely to struggle in this environment passed 122.30.
USD/JPY has made a come back and keeps edging higher on the 119 handle now. The major has been under offer on the back of risk aversion from global investors while China creates incredible turmoil of the uncertainty of potential catastrophic implications for global markets as the worlds largest consumer continues to break down.
USD/JPY's next move could be on Lockhart
The next major event to take place today will be Fed's Lockhart making a speech. On the back of the negativity around China and since his last hawkish rhetoric, we will be monitoring his tone this time around to see if he reverts back to a more dovish tone, mirroring the most recent minutes for the FOMC.
Greenspan called in a "conundrum"
Certain factors may be mentioned in respect of timings of a rate hike, or whether it is less appropriate to even consider hiking in a deflationary global environment with a slower global growth outlook.
Moreover, more than half the components of the consumer price index have declined in the past six months. Prices of commodities are through the floor at the same time that market expectations of inflation are now pricing in less than 2 percent annual inflation several years out.
All of this, while there is the continued potential for flight of safety to the strength of the US dollar, could just lead to the Fed needing to reverse back to zero again at some stage in the future and as Greenspan once said, this is the Fed's "conundrum".
Technically, USD/JPY's downside is wide open on fundamentals
With so many uncertainties, USD/JPY bulls are likely to continue to face headwinds on any recovery attempts back towards the recent highs and the Yen will continue to garner strength on risk aversion coupled with a reverse of sentiment in the Federal Reserve. Technically the levels to watch out for on the downside should the aforementioned lows give way, 115.84 is exposed ahead of 112.56, 110.00 and back to 105.18. Near term rallies are likely to struggle in this environment passed 122.30.
| News provided by: Fxstreet |
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