JPY Trading Outlook (10-11-2014)

USD/JPY The USD grudgingly rolled over, succumbing to the pressure of sharply lower US rates and a key reversal higher in Gold after Non-Farm Payrolls missed expectations. USDJPY will still finish up with the highest weekly close in 7 years but near term it’s run, and that of the Nikkei, look tired. Yesterday’s key reversal in EURJPY gave the bears something to lean against and they pressed their advantage throughout the session, triggering some stops on a break of the hourly trendline at 114.60. Ditto the Nikkei (futures) which are almost 5% off intraday highs and at the lows of the past 3 days. As of this writing, the real panic spot under Thursday’s low at 114.06 looks safe but you never know