Overnight profit taking in US equities saw the S&P move back within its multi-week rising channel. This is keeping US bonds bid, which in turn is providing near-term support for JPY. While the US dollar is currently finding a bid, our focus is on the JPY crosses. As nearby supports give way, we expect further corrective pressure within the context of the Q3 cross JPY rallies and we see downside risk extending toward the early September lows.
Click here to read the full report: Technical Research
Barclays Capital