A few highlighted charts as a fairly inconclusive week draws to a close, particularly disappointing, given that this was FOMC meeting week.
USDJPY – JPY crosses possibly pivotal after bond market consolidation
The JPY may have bottomed out here if the sharp consolidation in global bond markets has done likewise, and if equity markets roll over and jaw dropping complacency in risk conditions mean reverts, it could add a bit of energy to a fresh bout of JPY strength. Already we are seeing signs of the momentum rolling over in USDJPY if we have a look at a simple slow stochastic momentum indicator, although the entire recent backup above 107.00 took has neutralized the downtrend until a more significant sell-off (starting with move below 106.00 proves otherwise). USD and JPY may track one another in crosses if both serve as safe haven currencies as they have done in tandem in the past. Overhead, the 109.00 level is the clear major level that will coincides with the established range and soon the 200-day moving average.