Global equity markets are coming under selling pressure once more and as the outlook for risk deteriorates investors are becoming more defensive. Stock markets are falling sharply with the likes of the Shanghai Composite breaking down out of its recent range and pointing to 2200. Against this backdrop it is no surprise to see the yen rally; a Key Reversal Day in USD/JPY and a bearish divergence signal in EUR/JPY suggest this move is likely to continue this week.
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Barclays Capital