The yen strengthens slightly ahead of European trading
Perhaps global growth worries are beginning to creep in after weaker-than-expected Chinese data helped to sap market confidence a little earlier today. But the yen is quietly gaining as we enter the European morning with USD/JPY falling to a low of 111.48 and is leaning against a test of the 200-day moving average @ 111.51.
Buyers attempted to establish near-term control overnight but failed and thereafter, sellers established a more near-term bearish bias which has continued into the new day and worries about China’s economic rebound will certainly add to that notion.
If growth data in Europe later is seen to be worse in Q1 than expected, it could ignite more fears about the global economic slowdown so just be wary of that. For USD/JPY technically, watch out for the close today and any move that starts to trickle below 111.40 as it could lead to an extension to the downside this week.