 Japanese Yen is feeling the heat once again, buckling under the surge in major European and US benchmark yields. Notably, yield on Japan's 10-year JGB did jump, closing 0.655 today. However, this level has acted as a formidable ceiling for a while, even in the wake of BoJ's recent allowance hike to 1% last month. With this backdrop, Yen appears poised to challenge and possibly break recent support levels against its European counterparts and Dollar. Elsewhere in the currency markets, Dollar finds itself in the dubious distinction of being one of the day's laggards just after Yen, with Australian and New Zealand dollars closely tailing. In stark contrast, Canadian Dollar emerges as the top performer for the day, likely buoyed by the uptick in oil prices. Swiss Franc clinches the second spot, with Euro closely on its heels, while the Sterling presents a more ambivalent picture. Technically, EUR/JPY's strong rally today argues that pull back from 159.32 has completed. Firm break of 159.32 will resume larger up trend to 61.8% projection of 139.05 to 157.99 from 151.39 at 163.09. At the same time, break of 186.45 resistance in GBP/JPY and 146.55 in USD/JPY would further confirm Yen's downside momentum. In Europe, at the time of writing, FTSE is up 0.23%. DAX is up 0.50%. CAC is up 0.87%. Germany 10-year yield is up 0.0558 at 2.681. Earlier in Asia, Nikkei rose 0.37%. Hong Kong HSI dropped -1.82%. China Shanghai SSE dropped -1.24%. Singapore Strait Times dropped -0.63%. Japan 10-year JGB yield closed up 0.0245 to 0.655. |
