Stocks tank again - JPY gains focused against the USD

Published date: 19/11/2018
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USD/JPY is moving lower in the face of sharp stock market losses and at the time of writing, we see the leading S&P 500 down 30pts, which represents a 1% fall on the days so far - a little over an hour of trading.  The omens have been there for some time now with US rate higher and cheap money fading fast.  Stock markets are in for a jumpy ride into year end it seems though we have said this many times only to see a pullback later in the day.  

This would probably explain the USD/JPY reluctance to push lower aggressively, and as we noted last week, the next bank of support comes in around 112.00 and buyers may look to front run this with the USD also established as a safe haven.  

It is, however, worth noting that exposure levels are currently significantly long USD/JPY, so traders will be wary of liquidation risk, which could gather some momentum on the downside later in thin NY markets.  

Stock watching is the name of the game from here.


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