 Yen's selling took off overnight, following rebound in treasury yields. Weakness is somewhat solidified in Asian session, together with the strong rebound in Nikkei. With some technical levels broken, Yen's decline could extend before weekly close, and it'd likely end as the worst performing one. As for the week, Canadian Dollar is currently the second worst performing, while Kiwi and Sterling are the best. Technically, USD/JPY's break of 109.77 resistance suggests resumption of rebound from 107.47, for retesting 110.95 high. The development realign the near term bullishness with other Yen crosses. In particular, we'd note that CHF/JPY also jumps as recent rally extends. Outlook will stay bullish as long as 121.34 support holds. Next target is long term projection, 100% projection of 101.66 to 118.59 from 106.71 at 123.64. In Asia, Nikkei closed up 2.13%. Hong Kong HSI is up 0.36%. China Shanghai SSE dropped -0.22%. Singapore Strait Times rose 0.83%. Japan 10-year JGB yield is up 0.0052 to 0.081. Overnight, DOW rose 0.41%. S&P 500 rose 0.12%. NASDAQ dropped -0.01%. 10-year yield rose 0.036 to 1.610. |
