USDJPY

Daily Market Comment – Vaccine hopes power markets higher, can Powell add more fuel?

Posted on May 19, 2020 at 9:17 am GMT

Vaccine headlines, Fed stimulus bets, and EU recovery package propel stocks higher Yen, dollar, and franc suffer as euro and commodity currencies cheer Fed chief testifies before US Senate today (14:00 GMT), can he keep the ‘party’ going? Perfect storm for stocks Risk appetite returned with a vengeance to global markets on Monday, with the S&P 500 (+3.15%) having its best day in weeks amid a perfect storm of news around a virus vaccine, more Fed stimulus, and a European [..]

Daily Market Comment – Stocks and gold climb as Fed hopes overpower trade fears

Posted on May 18, 2020 at 9:23 am GMT

US equities set to open higher, gold soars after Fed chief’s ‘whatever it takes’ moment But escalating US-China tensions & second wave fears lurking in the background Pound sinks as investors brace for Brexit talks to fall apart Powell turbocharges gold, lifts stocks Global markets are in a good mood on Monday, with commodity currencies recovering and Wall Street set for a ~1.5% higher open, following a ‘whatever it takes’ moment from Fed Chairman Powell. In remarks published over the [..]

Technical Analysis – USDJPY flirts with 23.6% Fibonacci; lacks direction in near term

Posted on May 18, 2020 at 9:11 am GMT

USDJPY successfully surpassed the short-term simple moving averages (SMAs) in the 4-hour chart but the outlook remains neutral as it failed to jump above the 23.6% Fibonacci retracement level of the down leg from 111.70 to 105.95 at 107.33. The momentum indicators are moving with weak momentum too, with the MACD hovering slightly above the zero line and the RSI pointing marginally up. If there is an upside move above the 23.6% Fibo of 107.33, immediate resistance could come from [..]

Week Ahead – Reopening woes and trade fears dent sentiment

Posted on May 15, 2020 at 12:45 pm GMT

The coming week seems relatively quiet. The preliminary PMIs for April in the UK, US, and Eurozone will give us an update on how much businesses have suffered, while the minutes of the latest Fed meeting might reaffirm the central bank’s willingness to do even more, even as Chairman Powell hints that Congress should take the lead. Overall though, the most important variables for investors may be how quickly new virus cases increase now that economies are partially re-opening, and [..]

Japan set to enter recession but hope for rebound as state of emergency lifted – Forex News Preview

Posted on May 15, 2020 at 12:34 pm GMT

GDP numbers out of Japan will be headlining the start of the trading week as first quarter growth estimates are published on Monday local time (Sunday, 23:50 GMT). The world’s third largest economy is expected to have contracted for the second quarter in a row, meaning it has entered a technical recession even though Japan has opted against a strict lockdown. But Japan’s economic woes began before the outbreak of the coronavirus and this latest crisis only adds to the [..]

Daily Market Comment – US-China tensions simmer but markets still betting on recovery

Posted on May 15, 2020 at 8:55 am GMT

Trump threatens to “cut off” relationship with China as row over virus spread escalates But market fallout limited as hopes of recovery and more stimulus prevail Dollar headed for weekly gains, eyes US retail sales data Trump continues attack on China President Trump stepped up his fierce criticism of China as he continued to blame the country for failing to stop the spread of the coronavirus. Speaking to Fox Business Network on Thursday, Trump cast doubt on future trade links [..]

US retail sales could be the worst ever, but dollar may not react – Forex News Preview

Posted on May 14, 2020 at 9:11 am GMT

Millions of Americans have been applying for unemployment benefits the past two months as the business pressure stemming from the Covid-19 crisis had led to massive layoffs, increasing concerns about how deep consumption, which accounts for two thirds of the US economy, could crash at some point this year. US retail sales due on Friday at 12:30 GMT are expected to reinforce those worries, reflecting the steepest monthly decline in spending. However, the data may not necessarily expose the dollar [..]

Daily Market Comment – Powell warns of lasting virus damage, empowers dollar but sinks stocks

Posted on May 14, 2020 at 8:49 am GMT

Fed Chair Powell delivers bleak assessment of US economy but rules out negative rates Dollar stands tall as Wall Street takes a dive, pulling global stocks with it Pound and kiwi slip to multi-week lows, aussie and loonie also on the backfoot Powell’s dire warnings kill hope of speedy recovery Fed Chairman Jerome Powell’s much anticipated speech took centre stage on Wednesday as the head of the world’s most powerful central bank delivered a detailed but grim view of the [..]

With interest rates at zero, what will drive FX now? – Special Report

Posted on May 13, 2020 at 3:15 pm GMT

Interest rate differentials have traditionally driven the FX market, but now that every major central bank has slashed rates to zero, what will guide currencies? In a nutshell, it might be a blend of how high the risk of future shutdowns is, relative growth performance coming out of the crisis, global risk sentiment, and politics. The defensive yen seems attractive in this brave new world as it no longer suffers from a severe yield disadvantage, while the dollar’s role as [..]

Technical Analysis – USDJPY struggles in descending mode; 20-day SMA next support

Posted on May 13, 2020 at 7:04 am GMT

USDJPY is heading lower, flirting with the 20-day simple moving average while the price has been remaining in a downward sloping channel since April 6. The flat 200-day SMA and the horizontal RSI indicator are endorsing the weak momentum on price. However, the MACD oscillator is creating a bullish crossover with its trigger line, suggesting a potential upside tendency in the near term. More negative pressures would send the price to check the 50.0% Fibonacci retracement level of the up [..]

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