The markets are snoozing through Tuesday trade will little in the way of any data releases. We have the Bank of Japan's Kuroda speaking overnight. In his recent speech at the T20 summit he noted that ‘uncertainties remain high for the global economy’.
With stock indices on the back foot, we have seen a flight to safe haven currencies with USD/JPY close to the 3 months lows.
Technically we can’t see any reason for this downward bias to halt. An important level to note this evening is 109.00. A clear breach here and the next technical level is the 50% pullback at 108.52 then on towards the AB=CD formation target at 107.35, close to the 61.% Fibonacci at 107.61 (from 104.66-112.40)
