Japan hits shock recession

<p>The yen once again is the main mover as it falls sharply from its seven-year high after Japan shows that it’s entered an unexpected recession, […]</p>

The yen once again is the main mover as it falls sharply from its seven-year high after Japan shows that it’s entered an unexpected recession, which puts PM Abe’s plans to hike the sales tax in jeopardy and the delay is now back on.

USD/JPY is currently trading below the 116.00 level after hitting highs overnight just above 117.00.  There’s more uncertainty around the yen and it’s still the most volatile.

EUR/USD is trading pretty flat for the start of the week after a late surge on Friday, taking out a few stops along the way we are now trading above 1.2500 level. With Draghi due to hit the wires later this afternoon, we’ll be listening to see if he can add to the gains of late.

Cable had a good start overnight but is slowly losing its gains as the UK session gets under way. With no data to be released today, we could see it range-bound until tomorrow when we get the CPI data.  Currently GBP/USD is trading just below the 1.5700 level.




Supports  1.2520 1.2510 1.2500  | Resistance 1.2530 1.2540 1.2550




Supports 115.75 115.40 114.90  Resistance 116.00 116.45 116.75




Supports 1.5670 1.5655 1.5645  Resistance 1.5680 1.5690 1.5700



Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.