With the help from risk aversion and extended pull back in benchmark global treasury yields, Yen's rebound is making some progress. US 10-year yield is back below 2.9% handle in Asian session while Germany 10-year bund yield also broke 1% yesterday. Euro and Dollar are still relatively firm on risk-off sentiment. On the other hand, selloff continues to concentrate on Aussie and Kiwi, with Sterling picking up too. Technically, AUD/JPY resumed the decline from 95.73 after rejection by 4 hour 55 EMA. Further fall is expected to 100% projection of 95.73 to 90.41 from 94.00 at 88.68. Strong support is expected there to contain downside to complete this "corrective" move, and bring rebound. However, firm break of 88.68, with downside acceleration, would raise the chance that AUD/JPY is already in trend reversal. Such development, if happens, could be a signal to broader risk market developments. In Asia, at the time of writing, Nikkei is down -1.09%. Hong Kong HSI is down -1.05%. China Shanghai SSE is up 0.17%. Singapore Strait Times is down -0.76%. Japan 10-year JGB yield is up 0.0015 at 0.250. Overnight, DOW dropped -1.02%. S&P 500 dropped -1.65%. NASDAQ dropped -3.18%. 10-year yield dropped -0.072 to 2.921. |
