Asia Closing – USDJPY Breaks Below 77.80

USD/JPY H1

USD/JPY broke below yesterday’s low of 77.80 and is currently sitting above L3 and bottom Channel line. L3 generally can be considered relatively strong as a intraday support. If price break lower during US opening hours, we could potentially see downward momentum picking up.

AUD/USD H1

Prices still look bearish with H3 acting as a nice short-term ceiling. With price trading between 1.035 – 1.045 for an extended period of time, it is hard to say where AUD/USD may swing in the near term. However overall bearish tone remain if you compare AUD/USD with its European counterpart EUR/USD and GBP/USD.

NZD/USD H1

Similar to Aussie, Kiwi is also facing significant resistance at H3. If we look at price action from the last 2 trading days, H3 level 0.826 represent the line that separates 2 trading ranges: 0.826 – 0.835 and 0.820 – 0.826.

Nikkei 225 Futures H1

Almost a like for like replicate of the NZD/USD chart, perhaps just more volatile. Bulls will be hoping for prices to break above H5 (9,085) and yesterday’s High cleanly which opens up H5 as a potential topside target. In similar vein, Bears will be looking at H3 9,060 for a target back to L3. Currently, price is sitting at no-man’s land between H3 and H4.

 HSI Futures M15

A very subdued day for HSI which typically see price movement of 200 points or more for the past few trading days. A bearish outlook could be arguably put forward as price touches H3 briefly and never looked higher again. However, lack of follow through on the downside makes the bearish bias difficult to swallow.

Bottomline:

No strong direction during Asian Hours except for USD/JPY which has been in a long term bear trend for quite some time. Market will be waiting for the next big events e.g Bailout of Spain and Greece (or the lack thereof) to look for further buying/selling opportunities.

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