1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

USD/JPY: Major bearish turnaround post China GDP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    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 south for this Tuesday."
    For more information, read our latest forex news.
     

Share This Page