JPY Trading Outlook (30-09-2014)

USD/JPY The Asia peak and new trend high at 109.75 ran into trouble as stock markets and other risk trades were sold, some of it tied to worries about protests in HK and the mainland’s response to them, but more generally due to the prospect of eventual Fed tightening and doubts about the ECB’s ability to right the listing European ship with QEs. There are plenty of offers from exporters, spec long profit-takers and barrier and PRDCs defenses at 110, with stops building above. NorAm fund traders shrugged bargain-hunted after the stock market opened and O/N losses found buyers who were encouraged by Fed Evan’s taking some of the edge off next year’s pending tightening scenario. We’re hearing more about contingencies to tightened from the Fed these days. US econ were shrugged off, with most now waiting for NFPs this Friday to see if Aug’s downside miss was a one-off. Bids are concentrated between 109.00 and 109.15. The 10-DMA will be by 108.87 on Tuesday. There’s a slew of Japanese data tonight, but all for August. Abe & BOJ need Sep data, too, to decide on fiscal & Monetary policy for next year. EUR/JPY holding 21-DMA sppt. High-betas crosses heavy.