Benefit regaining limited
12/1/2015 9:13:03 AM
The JPY eased somewhat against most of its rivals, as a positive close in the Shanghai Composite weakened the strong risk aversion sentiment that favored the safe-haven currency ever since last week. The USD/JPY pair, however, closed the day pretty much unmoved, finding selling interest on advances towards the 118.00 figure. Technically, the pair has managed to post a higher high and a higher low, signaling some additional sliding exhaustion after the pair reached 116.69 at the beginning of the week. The short term picture is showing that the benefit is still limited, the price is unable to advance away from its 100 SMA, while the technical indicators are turning lower around their mid-lines. JPY’s recent haven-driven gains have pushed it well above levels implied by attentions of comparative policy. Sustained confusion should keep pressure on USD/JPY, however we note a substantial weakness to rapid gains in the event of a moderation in risk aversion.