Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

USD/JPY Stable Despite Earthquake

By Swissquote Bank LtdCurrenciesNov 22, 2016 04:16AM ET
www.investing.com/analysis/usd-jpy-stable-despite-earthquake-200166006
USD/JPY Stable Despite Earthquake
By Swissquote Bank Ltd   |  Nov 22, 2016 04:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
-0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
-0.24%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
-0.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CHF
+0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EUR/GBP
+0.24%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+1.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Market Brief

The S&P 500 broke another record yesterday as it closed at an all-time high, breaking the previous record from August 23rd this year. The blue chip index closed at 2,198 points on Monday as investors continued to cheer the election of Donald Trump but was unable to break the symbolic 2,200 points resistance.

On Tuesday, Asian equities followed Wall Street’s lead with the Shanghai Composite surging 0.94% and Hong Kong’s Hang Seng jumping 1.51%. In Japan, the Nikkei and Topix indices edged up in spite of a 7.4 magnitude earthquake, sparking tsunami fears. Both indices ended in positive territory, with the former edging up 0.31% and the latter rising 0.32%. New Zealand shares were the ones to move below the neutral threshold with the S&P/NZX falling 0.48% to 6,816.40 points.

G10 Advancers and Decliners vs USD
G10 Advancers and Decliners vs USD

In the FX market, investors are struggling to find a new driver as the US dollar remains in overbought territory. EUR/USD slid 0.15% in overnight trading after surging 0.30% on Monday. We maintain our view that the pair should correct to the upside in the short-term. However, the upcoming ECB meeting on December 8th will likely prevent traders from reloading long EUR positions.

Looking at option positioning, investors have turned extremely bearish regarding the single currency with the 6-month 25 delta risk reversal measure freefalling to -2.50%, the lowest level since June 2015, which indicates that put options are in great demand compared to call.

The Japanese yen remained stable overnight in spite of the earthquake. USD/JPY fell to 110.27 in the early Asian session before recovering to 111.24 in the early European one. The pair is still struggling to break the 111.91 key resistance level from April this year. Just like EUR/USD, we believe that a correction may be healthy as the pair is also trading in overbought territory.

The pound sterling stabilised this morning after rising around 1.40% yesterday after British Prime Minister Theresa May promised to lower corporate tax, most likely below 15%. Following her speech it did not take long to see a sharp appreciation of the pound against most of its peers. GBP/USD climbed back to 1.25, while EUR/GBP collapsed to 0.8495, the lowest level since mid-September.

Today traders will be watching retail sales from Denmark; current account balance from Brazil; unemployment rate from South Africa; retail sales from Canada; existing home sales and Richmond Fed manufacturing index.

Today's Calendar
Today's Calendar

Currency Tech

EUR/USD
R 2: 1.1259
R 1: 1.0954
CURRENT: 1.0616
S 1: 1.0521
S 2: 1.0458

GBP/USD
R 2: 1.2857
R 1: 1.2674
CURRENT: 1.2467
S 1: 1.2302
S 2: 1.2083

USD/JPY
R 2: 113.80
R 1: 111.45
CURRENT: 110.85
S 1: 106.14
S 2: 104.97

USD/CHF
R 2: 1.0328
R 1: 1.0257
CURRENT: 1.0107
S 1: 0.9632
S 2: 0.9537

USD/JPY Stable Despite Earthquake
 

Related Articles

Jason Sen
AUD/JPY: Be Ready to Buy a Break Above 93 By Jason Sen - Jan 27, 2023

AUD/USD we will stick with buying at support until it looks like we have a sell signal. Good support at 7065/60 (although we did not reach here yesterday). Longs need stops below...

USD/JPY Stable Despite Earthquake

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email