USDJPY

Week ahead – US employment report to kick off the New Year

Posted on December 28, 2018 at 1:20 pm GMT

After a particularly turbulent week that lacked fresh catalysts but not wild price swings, traders will now turn their sights back to more familiar themes, such as economic data releases, and most notably the US jobs report for December. That doesn’t mean everything is back to normal though, as liquidity will likely remain thin, which implies that any piece of news could have a disproportionally large market impact. Further deterioration in China’s manufacturing PMI expected The week will commence with [..]

European Open Preview – Dollar sags but equities stage comeback

Posted on December 28, 2018 at 9:07 am GMT

US equities stage a major comeback late in the session, close higher Dollar edges lower as Fed rate-hike expectations are almost fully priced out Yen shines, loonie and aussie flirt with lows amid broader risk-off mood US stocks stage an impressive late comeback, but skepticism lingers It was another session characterized by sharp moves in both the currency and equity markets on Thursday amid thinner-than-usual liquidity, and with little in the way of fresh news to drive the price action. [..]

FX year ahead 2019: End of dollar dominance?

Posted on December 24, 2018 at 12:22 pm GMT

As 2018 draws to a close, the heavily sold currencies are set to end the year off their lows, while the US dollar – one of the biggest winners of 2018 – appears on track to start 2019 on a negative footing. While it’s too early to predict a new downtrend for the dollar, expectations that US interest rates are nearing their cycle peak could provide the greenback’s peers some much-needed relief. Yet, several risks remain – ranging from the [..]

Japanese industrial output and retail sales to weaken in November as yen enjoys revived safe-haven status – Forex News Preview

Posted on December 24, 2018 at 11:19 am GMT

Economic data out of Japan – the only major releases of the week – are anticipated to point to further trouble for the Japanese economy on Friday (local time). Like much of the rest of the world, growth in Japan slowed down considerably in 2018, with GDP contracting in the first and third quarters. While a modest recovery is expected in the fourth quarter, unemployment, industrial output and retail sales figures will likely point to more weakness ahead. The jobs [..]

European Open Preview – Stock carnage deepens; yen extends gains

Posted on December 24, 2018 at 8:58 am GMT

US stock indices extend losses, Nasdaq enters bear market as concerns around future growth feed risk aversion Dollar and yen outperform on safe-haven demand, but are giving back some gains on Monday amid encouraging trade headlines Equities drop to fresh lows as uncertainty reigns US stock indices closed with sharp losses once again on Friday, in an environment characterized by thin liquidity, as investors attempted to protect their profitability heading into the New Year via liquidating more of their prior [..]

Technical Analysis – USDJPY meets 200-day MA in oversold area

Posted on December 24, 2018 at 8:15 am GMT

USDJPY closed marginally above the 200-day simple moving average (MA) last week, marking its second worst weekly performance for this year. With the RSI moving around its 30 oversold threshold and the Stochastics being ready to post a bullish cross below 20, a rebound could take place in the coming sessions, though the MACD suggests that bearish forces will dominate in the short term as the indicator continues to strengthen to the downside and below its red signal line. Should the price bounce up, [..]

Week Ahead – Markets to enter Christmas lull; risk of volatility in thin trade

Posted on December 21, 2018 at 12:55 pm GMT

As the holiday period begins, markets will go into quiet mode for the next two weeks with little on the economic agenda to keep traders at their desks. However, with the market sentiment being stuck in risk-off mood, there is a threat that thin trading conditions could lead to some unexpected volatility, particularly from any headlines that would fuel concerns of a major global economic downturn in 2019. Japanese data to dominate The Japanese market will be the busiest next [..]

European Open Preview – Stocks sink alongside dollar as market havoc continues

Posted on December 21, 2018 at 9:16 am GMT

US stocks extend plunge as investors remain jittery of a Fed policy error, US government shutdown, and US-China tensions Yen outperforms as uncertainty deepens, while dollar continues to bleed BoE remains on hold, points to intensifying Brexit uncertainties S&P 500 closes at September 2017 lows There was no reprieve for US stock markets, which extended their losses as the dust following the latest Fed meeting settled. The benchmark S&P 500 (-1.58%) closed at its lowest level since September 2017, with [..]

European Open Preview – Dollar shows weakness despite not-so-dovish FOMC meeting

Posted on December 20, 2018 at 9:20 am GMT

Fed’s dot plot indicates two rates hike next year, down from three Bank of England to hold rates steady amid Brexit drama EU and Italy find common ground on budget plan Fed not as dovish as expected Shares in the US and Asia tumbled after the Federal Open Market Committee (FOMC) raised interest rates by a quarter point to 2.25-2.5% in a widely expected decision and hinted further tightening next year despite the hazards in global economic conditions. The central bank [..]

Technical Analysis – USDJPY declines to 3-week low; shifts outlook to neutral

Posted on December 20, 2018 at 7:29 am GMT

USDJPY extended its losses early on Thursday and is set to complete the fifth consecutive red day. The pair plunged below the ascending trend line in the daily chart and the 23.6% Fibonacci retracement level of the upleg from 104.60 to 114.55, near 112.20, reaching a new three-week low around 111.86. According to the MACD, negative momentum could push for further losses in the short-term as the indicator picks up steam below its red signal line. The RSI is also falling and [..]

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