Yen selloff is the main theme in the Asian markets today, in particular as USD/JPY breaks out on the upside with acceleration. The move was fueled by strong rally in US treasury yields overnight, as well as rally in Nikkei and benchmark JGB yield. Dollar is currently the strongest one for the, reversing much of the pre-holiday decline. Commodity currencies are also slightly firmer, but we'll see if Europeans could outperform them. Technically, in addition to Yen crosses, we'd also pay attention to EUR/USD. It was knocked off by 1.1382 resistance despite a very brief breach during illiquid holiday markets. EUR/USD could be heading back to retest 1.1185 support and break will resume larger down trend. Such development, if happens, could affirm the case that Dollar is really on the move. In Asia, at the time of writing, Nikkei is up 1.71%. Hong Kong HSI is down -0.29%. China Shanghai SSE is down -0.35%. Singapore Strait Times is up 1.22%. Japan 10-year JGB yield is up 0.0174 at 0.090. Overnight, DOW rose 0.68%. S&P 500 rose 0.64%. NASDAQ rose 1.20%. 10-year yield rose 0.116 to 1.628. |
