FX Outlook: JPY Targets 110.00, Stalls at the Initial Test, but Pressure Continues

FX Outlook: JPY Targets 110.00, Stalls at the Initial Test, but Pressure Continues

All eyes were on the JPY pairs today, led by USD sales down towards the March lows, breaking below here and 110.50 to put in a test on 110.00.

We managed to hold some 25 ticks or so off this key area, with a number of ‘jolts’ higher along the way, with source reports of the BoJ considering further easing measures and a stronger than forecast US non-manufacturing ISM. The downside remains vulnerable nevertheless, and unless we get a significant recovery through 111.00, sub 110.00 is still on the cards.

Cross JPY rates also broke a series of big figure levels, but major support points intact as yet.

GBP is back on the rack with EUR/GBP grinding through key levels on the upside; .8030-65 the area to watch for here.

Cable is through the Friday lows as a result, but 1.4100 holding for now. This is/was in spite of an in-line UK services PMI, but Brexit fears will be cited for the latest weakness.

Spot EUR digging in as a result, but some weakness creeping in with the USD index threatening higher. AUD enjoyed a brief reprieve post RBA, but the downside eventually resumed to set fresh lows ahead of .7500.

NZD/USD reclaimed .6800 on the back of a surprise rise in GDT index and WMP, but gains tentative.

CAD lows stretched through 1.3200, but losing a little momentum since. Oil relatively well behaved in comparison, but prices heavy.

(Market News Provided by FXstreet)