FxGrow Daily Technical Analysis – 13th Oct, 2016
By FxGrow Research & Analysis Team
JAPANESE YEN STRENGTHEN AFTER DISAPPOINTING CHINESE DATA
USD/JPY dropped 90 pips on early morning trading sessions in response to negative Chinese trading balance.The worse-than expected Chinese trade figures spooked markets, and weighed heavily on the risk-associated space, causing a drop in equities and US bond yields thus surging the Japanese Yen higher. The Nikkei 225 index erased gains and now drops -0.30% to trade around 16,790 levels. Exports in September dropped 10% in dollar terms and imports fell 1.9 percent, with a trade surplus of $41.99 billion. Add to that a 0.2% increase in Japanese banking loads bolstered the safe haven Yen against U.S Dollar.
USD/JPY opened at 104.63 (10 weeks high) and due to the above financial reports catalysts, the pair scored 103.55 lows (-113 pip). USD/JPY made a tiny re-bounce currently trading 103.75 intraday, still managed to stay below daily Pivot 103.98.
Trend: Neutral bullish
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