All Articles Tagged - USDJPY

Week Ahead – Flash PMIs to bring recession risks to the forefront, SNB meets

Posted on March 18, 2022 at 1:55 pm GMT

The upcoming week will quieten down a bit after what was a busy time for central banks and geopolitical events. But there’s still plenty of activity ahead as the latest flash PMI readings are due and the Swiss National Bank will keep the monetary policy theme running, not to mention how the war in Ukraine will unfold amid slow progress in the negotiations for a ceasefire. Will Eurozone PMIs flag a slowdown? The fallout from the Ukraine conflict has had [..]

US Open Note – Pound corrects lower after dovish BoE; commodities up again

Posted on March 17, 2022 at 2:29 pm GMT

Dollar weaker after hawkish FOMC The US dollar continued to trade lower against a basket of major currencies for the third consecutive day to reach 98.19 despite the strong hawkish message from the FOMC policy meeting late on Wednesday. The Fed acknowledged the Ukrainian geopolitical risks and slashed its growth projections by almost half to 2.8% for 2022 but raised interest rates by a quarter-percentage as widely expected. Strikingly, however, it signaled six more rate increases this year and pledged [..]

Yen in the firing line as BoJ set to stick to stimulus as others exit – Forex News Preview

Posted on March 16, 2022 at 3:14 pm GMT

The Bank of Japan will round up this week’s central bank decisions on Friday but is unlikely to follow in the footsteps of the Federal Reserve and Bank of England by raising interest rates. Although consumer prices in Japan are soon set to surge on the back of the jump in global energy prices, BoJ Governor Haruhiko Kuroda has signalled this does not change anything on the policy front in Japan. It’s no wonder therefore that the yen is tumbling, [..]

Technical Analysis – USDJPY challenges the more than 5-year peak again

Posted on March 16, 2022 at 8:27 am GMT

USDJPY is heading north towards the more-than-five-year high of 118.45 and any advances beyond this top would endorse the long-term bullish outlook. The pair penetrated the ascending channel to the upside; however, the technical indicators are suggesting an overbought market. The RSI is flattening above the 70 region, while the stochastic is turning lower in the overstretched region. Should the pair manage to strengthen its positive momentum, the next resistance could come around the 124.00 psychological mark, taken from the [..]

Fed meets: time for liftoff but all eyes on dot plot and balance sheet – Forex News Preview

Posted on March 14, 2022 at 4:38 pm GMT

The US Federal Reserve is due to announce its latest policy decision on Wednesday at 18:00 GMT and it’s almost certain that interest rates will go up for the first time in the post-pandemic world. Chair Jerome Powell has allayed speculation of a hefty 50 basis points hike so all the focus will be on how many additional rate increases are pencilled in for the rest of the year as well as on what the Fed’s plans are for reducing [..]

US Open Note – Markets hope for peace talks; US stock futures mixed

Posted on March 14, 2022 at 2:15 pm GMT

Risk mode on as Ukraine-Russia start the fourth round of discussions While there is no clarity on what the positive assessments from the latest Russian-Ukraine high-level talks are, markets continued to behave like the fourth-round of talks would result in another positive outcome today even if Russia’s attacks expanded closer to the Polish borders, and the war conditions remain largely unchanged. Another reason for the current risk-on tendencies is perhaps the fact that investors have started to adjust to the [..]

Daily Market Comment – War trades lose steam amid hopes for a ceasefire

Posted on March 14, 2022 at 9:43 am GMT

Signs of progress in peace talks spread some cheer in markets Safe havens and crude oil cool down, stocks and euro bounce back Fed and Bank of England set to raise interest rates this week War trades power down Financial markets have turned into one gigantic ‘war trade’ in recent weeks. Politics has overshadowed economics, with most assets driven entirely by the conflict in Ukraine. This phenomenon is on full display today after negotiators on both sides signaled progress in [..]

Technical Analysis – USDJPY faces downside risks; bullish outlook maintained

Posted on March 14, 2022 at 8:39 am GMT

USDJPY came back swinging from its early-March low, reaching multi-year highs as positive momentum mounts. Moreover, the pair is currently trading way above its 50- and 200-period simple moving averages (SMAs), reinforcing its overall bullish outlook. Short-term momentum oscillators reflect a mixed picture as the RSI is found above its 70 overbought region, signalling that an imminent pullback is not out of the equation. However, the MACD is found above zero and its red signal line, which could indicate that [..]

Technical Analysis – USDJPY dissolves bullish triangle on the upside

Posted on March 11, 2022 at 1:21 pm GMT

USDJPY surged above January’s peak of 116.33 before the US open on Friday, dissolving the bullish ascending triangle on the upside. A sustainable extension above the bullish triangle could promote a continuation of the original long-term positive trend. Of course, the 117.00 – 117.50 resistance territory taken from the 2014 – 2016 period, which also encapsulates the resistance line from the March 2021 peak of 110.95 and the constraining line from September’s low of 109.11, could keep the bulls busy. [..]

Daily Market Comment – Mood sours again after Russia-Ukraine deadlock; dollar stands tall

Posted on March 11, 2022 at 10:01 am GMT

Lack of progress in Ukraine peace talks weighs on stocks again Euro slips as ECB’s hawkish surprise comes with a dovish twist Dollar hits 5-year high versus yen amid ongoing safe-haven appeal and Fed bets Fresh jitters after no progress in Ukraine talks Equity markets are feeling the strain of war again as talks between the Russian and Ukrainian foreign ministers in Turkey on Thursday went nowhere. Hopes that the two sides might reach some kind of a ceasefire agreement [..]

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