Weak Equity Markets Push USD JPY Down

The weaker equity markets have investors flocking to the Japanese Yentoday.  So far all this market has done is retrace most of yesterday’slate session rally.  This action has put the USD JPY in a position totest yesterday’s low at94.66. 

The weaker equity markets have investors flocking to the Japanese Yen today.  So far all this market has done is retrace most of yesterday’s late session rally.  This action has put the USD JPY in a position to test yesterday’s low at 94.66. 

A break through this level may be labored however as a pair of bottoms at 94.45 and 93.84 as well as a 50% retracement level at 94.28 stand in the way of this market breaking back to 92.58.

The main trend shifted to down yesterday on the daily chart.  This does not mean this market will go straight down however.  There may be retracements that will attract selling pressure.  This strategy should be followed as long as this pair stays under the last swing top at 96.98.

Daily Chart

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