USDJPY Breaks Neckline, S&P500 Comes Close, Dollar No Safe Haven
• Risk benchmarks including equities and Yen crosses falter to start the trading week
• The Dollar has notably struggled in the face of souring sentiment where it previously would have climbed
• Gold rallies and tentatively pauses at blatant 2,000 resistance awaiting USD cue
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Despite this week's tangible downgrade in scheduled event risk - and liquidity with China offline - the markets are proving no less burdened risk aversion. Many higher yielding, higher risk assets across the board took a tumble to start the week. A few of them suffered more troubling technical pain. The S&P 500 dropped below a high profile neckline before unconvincingly closing back above the technical boundary. Meanwhile, USDJPY broke through a floor that has stood for 15 months with little evidence that long-term bulls or bargain hunters are willing to stand in front of train. Whether risk sentiment finally falters or swoops in for another recovery will decide the fate of many assets and trades. Meanwhile, the dollar continues to diverge from the risk push while Gold seems to be regaining its haven status. Is the seismic shift in sentiment underway or is this another false start. We consider this in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.