Stocks trying to rebound
Pres. Trump made the comments that you might expect, and stocks have come off lows. The USDJPY was already seeing a modest bounce after a fall below a lower trend line failed. The price rise eyes the lows from last week at 109.45-46 and at falling topside trend line at 109.48.
We currently trade at 109.36.
Earlier I commented on the AUDJPY as it tested a lower trend line and retracement level:
Looking at the daily chart, the price low for the day has reached down to 75.80. There is a channel trend line at 75.76. Below that is the 50% retracement of the move up from the January “flash crash” low at 75.68 (I am using Bloomberg data as the low from the flash crash can vary). There may be a cause for pause technically against the trend line/retracement area as a result of dip buyers sticking a toe in the water. However, I would not expect them to “love” the position given the market uncertainty. They could get “lucky” though. The stocks slide is prone to corrections from a tweet/or WH comment. We know Pres. Trump is teethered to the stock market.
The low reached 75.72 and bounced (see chart below). We are currenty testing the underside of the broken trend line. A move above will be eyed for more upside potential.