Yen is trading broadly lower this week, and remain soft in Asian session, following the rally in US stocks overnight. Dollar is also weak in risk-on markets, while Euro is not far away. On the other hand, Sterling is so far the strongest one, followed by Aussie. The economic calendar is very light in the holiday-shortened week. The movements in currencies will more likely follow overall risk sentiment than not. Technically, we'll keep an eye on the development in CAD/JPY in the next few days. Correction from 93.00 appears to be complete at 87.42 after drawing support from medium term trend line. Break of 90.34 resistance will affirm this case and bring stronger rally back to retest 93.00 high. Such development, if happens, will help affirm the return of medium term weakness in Yen. In Asia, at the time of writing, Nikkei is up 1.10%. Hong Kong HSI is down -0.09%. China Shanghai SSE is down -0.16%. Singapore Strait Times is up 0.50%. Japan 10-year JGB yield is down -0.0006 at 0.064. Overnight, DOW rose 0.98%. S&P 500 rose 1.38%. NASDAQ rose 1.39%. 10-year yield dropped -0.012 to 1.481. |
