Technical Analysis

ForexLive Asia-Pacific FX news wrap: Yen moves higher to open the new year

over the new year break was a story from Japan’s Nikkei:

story played a role in sending the yen higher during the session. But
it wasn’t one-way traffic.

in the session USD/JPY moved higher in a short time, rising to just
shy of 131.40 in mere minutes. A lack of liquidity played a role,
with Japanese and New Zealand markets closed for a holiday again. It
was too early for most of Singapore and Hong Kong to have entered the
forex market.

more centres opened USD/JPY dropped away, and its not far from its
session low as I update now, down more than 160 points from its early
high. Quite the move for the Asian timezone.

had its own swings. The initial move for it was from under 1.3560 to
just short of 1.3620 before dropping back to lows under 1.3550, where
it is as I post. GBP, AUD and NZD traded similarly against the US
dollar, lower initially before rallying sharply.

The Financial Times
reported the EU is to send COVID vaccines to China for free, which
helped the risk mood improve in the session. Chinese stocks (mainland
and Hong Kong) opened lower but they have recovered to be positive
for the session. The China December private survey (Caixin/Markit)
manufacturing PMI remained in contraction for a 5th
straight month. Some of the internals were more positive though, see
bullets above.

is up on the session.

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