FOREX: JPY Crosses - Momentum Higher Stalls, Awaits NFP
US Equities went back to doing what they do best and regained its momentum higher as further data pointed to the labour market cooling, increasing the odds of rate cuts. This morning futures have opened a little higher, E-minis +0.15%, NQU5 +0.25%. The JPY crosses though could not build on their recent gains even with this backdrop and has seen their momentum stall as we approach tonight's NFP.
- EUR/JPY - Overnight range 172.61 - 173.21, Asia is trading around 172.85. This pair continues to stall above 1.7300. A sustained break above 173.00 is needed to see momentum pick up and the uptrend regain the upper hand.
- GBP/JPY - Overnight 199.01 - 199.82, Asia trades around 199.30. This pair has stalled just below 200.00, awaiting NFP. A sustained break above 200.00 needed to start the next leg higher.
- NZD/JPY - Overnight range 86.67 - 87.04, Asia is currently dealing 86.80. The pair looks to have stalled above 87.00. The sell zone between 87.00/88.00 remains the preferred area to fade first up.
- CNH/JPY - Overnight range 20.7448 - 20.8288, Asia is currently trading around 20.7600. This pair has remained above its pivotal 20.30/20.40 support. The pair continues to trade comfortably within its recent 20.40-21.00 range. A sustained break back above 21.00 is needed to potentially begin an extension higher.
Fig 1 : NZD/JPY Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
FOREX: JPY Crosses - Bounce Off Support Overnight, Headwinds Still Around
The US Equity move higher stalled overnight and a poor ISM services report saw it trade heavy for the whole N/Y session. The market is trying to ignore the worries about growth that would make the cuts possible but the ISM services data shows these headwinds are increasing. This morning has seen US futures open a little lower, ESU5 -0.05%, NQU5 -0.25%. The Yen was sold overnight and managed to bounce off various support levels, there are still lots of headwinds for risk though and for this reason I feel you could still expect sellers on a bounce.
- EUR/JPY - Overnight range 169.82 - 170.95, Asia is trading around 170.80. This pair bounced off its support just below 170.00. Watch for any signs of topping out should risk actually start correcting lower, a move sub 169.50/170.00 could signal a deeper pullback is on the cards.
- GBP/JPY - Overnight 195.27 - 196.46, Asia trades around 196.35. The pair sliced through its support around 197.00 and has moved very quickly towards the 195.00 support. The move higher looks to have stalled for now and a sustained break below 195.00 would turn momentum lower again. A bounce back towards 197.00/197.50 should now see sellers remerge first up.
- NZD/JPY - Overnight range 86.67 - 87.11, Asia is currently dealing 87.20. The pair failed with multiple attempts to break above 89.00. A top looks to potentially be in place now and a break sub 96.50 could signal a deeper correction, expect sellers on any back towards 88.00 initially.
- CNH/JPY - Overnight range 20.4641 - 20.5608, Asia is currently trading around 20.5200. This pair broke through its 20.7000/20.8000 resistance area last week but the price action was pretty ugly as the move higher was rejected in what looks like a key day reversal. Initial support is around the 20.40 area but a sustained break back below 2.3000 would begin to turn momentum lower again.
Fig 1 : GBP/JPY Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
MNI EXCLUSIVE: Ex-RBA Member Warns Not To Ease Too Much
An ex-RBA board member warns against over easing.
On MNI Policy MainWire now, for more details please contact sales@marketnews.com
CHINA: Central Bank Withdraws CNY170.5bn via OMO
- The PBOC issued CNY138.5bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY309bn.
- Net liquidity withdrawal CNY170.5bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.42%, from prior close of 1.44%.
- The China overnight interbank repo rate is at 1.30%, from the prior close of 1.35%.
- The China 7-day interbank repo rate is at 1.43%, from the prior close of 1.44%.
