YEN and Nikkei, Slip Sliding Away

YEN and Nikkei, Slip Sliding Away

USDJPY, Yen crosses and NIKKEI under relentless pressure today as quadrature position and possible disappointments are their toll.

The hype on Japan stimulus seems to fade quickly into the meeting of the BoJ on Friday. Various officials were on the son that morning and night and the general tone seems to be one of less is more, rather than a big bang.

This continued to weigh on USD / JPY and JPY / Crosses in the Asian session. Following my thoughts Friday USD / JPY fell out of bed this morning as pre-liquidity central bank meeting deteriorates. USD / JPY broke the bottom of New York at 105.75 and fell 100 pips in rapid succession, to 104.75, triggering stop losses and more pain in the Yen crosses.

The title below seems to have been the nail in the coffin of a nervous market,

10:30 (JP) Japan PM Abe: To maintain FY20 budget target - Govt sees FY20 nominal GDP to ¥ 583T assuming economic growth- will not reach the target nominal GDP of ¥ 0T in FY24 if economic growth maintains the current pace. - Source TradeTheNews.com

in 2020 central fiscal objective of the government is to achieve a budget surplus in the large abenomics plan. The precarious state of public finances erodes their ability to go out with a stimulus package "king hit". With the FOMC is unlikely to come to the rescue with a rate hike, the cold realization we can be seen in disappointment short positioning removed JPY board before the Bank of Japan meeting.

The Nikkei also suffers down 1.44% as we speak.

USD / JPY

104.45 daily support broken I write with nothing to 103.17, double the previous peak and Ichimoko conversion line. way above resistance now around 105.75, the low of New York.

Yen

GBP / JPY

Leading the way up to 0 points on the session. GBP / JPY is already faltering overnight after a Guardian newspaper story, warning of a major bank high street was preparing to introduce negative interest rates on the company's accounts.

Guardian article

GBP / JPY daily support at 137.30 is broken, and a daily close below 133.60 opens here on the cards. 139.00 daily resistance seems very far away now.

EUR / JPY

did not pass go at all during the night. Closure on the bottom of New York around 116.25 and going straight down in Asia as a mild EUR weighs in combination. Daily support is at 113.60.

AUD / JPY

Remains "in the clouds" so to speak. in this case, the cloud daily Ichi moko. Resistance comes around trendline at 79.00 then 79.40.
Support 78.14, down from the cloud, then 77.40.

XAUJPY

another double whammy with fresh XAUUSD USD overall strength continues. from the peaks of 141750 it a week ago negotiates us to 137,650 currently. the moving average of 100 days is below 137,150 with the top of the daily cloud at 135750.

NIKKEI

Finally turn the Nikkei. More titles adding to the general negative sentiment leaves the Nikkei hovering daily support having fallen in Ichi moko cloud and broke the moving average 100 days 16470 already this session.

12:21 (JP) Japan Fin Min Aso: Govt yet to decide on the size of stimulus spending; Still considering appropriate amount - financial press - Source TradeTheNews.com

The support here is at 16385, down previous daily and 16175 cloud base. The DMA 100 to 16470, 16560 to the top of clouds and former triple bottom around 0 leave much wood to cut topside.

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