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  • USD/JPY: stabilising as the greenback remains firm, en route to 100-hr SMA.
  • USD/JPY: 110.60 supports but  the risk skewed to the downside.

USD/JPY has been stabilising as the greenback remains firm and the contagion risks have been limited, so far, the that of the EM currency complex, predominantly in ZAR/RUB/BRL/MXN and ARS. USD/JPY is currently trading at 110.75 having made a high of 110.83 and a low of 110.58.  

The Japanese yen was, in the most part, changing hands in tandem with the reports that Turkey would release the detained American pastor. “This was denied by the US embassy in Turkey but in late NY trade, the White House at least confirmed that the Turkish ambassador had met with US national security advisor Bolton,” analysts at Westpac noted.  The pair was subsequently capped in the 110.90s and traded back to 110.60 for a close of 110.70. EUR/JPY is one to monitor as well which rebounded to the 38.2% & 100-W MA/50-hr SMA by 126.80.  

Wall Street was trading in the red where the DJIA, -0.50% lost 125.44 points, or 0.5%, to 25,187.70. The S&P 500 dropped 11.35 points, or 0.4%, to 2,821.93, while the NASDAQ chopped in and out of negative territory closing down by a modest 19.40 points, or 0.3%, to 7,819.71).

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair is biased lower according to technical readings in the 4 hours chart:  “It continues developing below its 100 and 200 SMA, with the shortest heading south below the larger one, as technical indicators corrected within negative levels, but lost upward strength, remaining below their midlines and keeping the risk skewed to the downside.”