Japanese Yen Weakening As Stocks Open The Week Bid
The Yen has sold off significantly to start the trading week as US equity futures have a strong bid and the Nikkei (^N225) is up 2% early in the session.
The EUR/JPY pair hit October highs and broke through the 38.2% retracement with some significant price action. We see the pair has traded off that level a few times since October and we will now look for it provide some short-term support, with the 100 day moving average providing further support.
The USD/JPY pair is looking very technical as it tested the 100 day moving average late last week and is now threatening the 38.2% retracement. We will look for a break of this level to lead the pair toward a test of the 50% retracement and 200 day moving average above that (right below par.)