USDJPY finally finds a bottom after China bond news

USDJPY finds some support around the low 111’s

Sell off from news that China may limit or halt US bond buying pulls up at 111.27
Bond sell off (rising yields) a negative for the buck in this case
Markets now on watch for signs of a follow through in US trading
US 10’s top out just shy of 2.60%. Face a double top from Dec 2016/Mar 2017 highs 2.65%-2.63%
Broken support and 200 DMA at 111.65/67 marks first resistance. Bounce from lows has reached 111.61 so far
Next resistance is into 111.85/90, then stronger at 112.00. Further resistance into 112.20 (100 DMA 112.13 & 55 WMA 112.19). Further resistance around old S&R at 112.50
Both 55 & 200 WMA’s (112.18 & 112.38) need watching for a weekly close
Support very mild 111.40/45, and then the low 111.27 to 111.20
50.0 fib of Sep 2017 swing up at 111.01. Support in place 111.05 down to 110.95. Stops noted through 110.90
Break of 110.90 would suggest a steeper fall to test the wider 108’s-114’s range
Vols naturally higher in wake of China news 1m ATM vols hit a high of 7.02. Had dipped under 6.00 briefly this week

USDJPY daily chart

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