USD/JPY recap 13.10;14.10.2015
As USD selling gains speed, the yen finally broke the triangle formation on the daily passed trough 119 and currently is moving towards 117.849. With a 116 pips move the yen may resume gains against the dollar. Moodys made a statement about the Japanese banking system, but price didn't move when the event occurred. Their comments where in short: Japanese banking system stable. And highlights:
- Banks stable but pressure on domestic profitability
- Stable outlook reflects bank's operating environment
- Asset risk, liquidity will remain stable
- Expects capital ratios remain roughly stable in 2015-16 with modestly positive loan
- Bank's profitability to decline over next 12-18 months as lower net interest income will offset incremental increase in free income
- Yen liquidity will remain a credit strength
Just an informative perspective from the agency.
Search for short opportunities and put a target for now 117.849. Wait for a brake there and a confirmation that the selling will continue towards 116.105 and 115.546.