All Articles Tagged - USDJPY

Daily Market Comment – Volatile trading continues as Fed meets, Ukraine tensions boil

Posted on January 25, 2022 at 10:24 am GMT

Wall Street bounces back but futures, Asia sink again; mood brighter in Europe Dollar and yen hold firm as Fed angst and geopolitical risks keep havens in demand Earnings and US consumer confidence gauge may test investor nerves More rocky rides for stocks Shares on Wall Street staged a dramatic rebound on Monday, recovering from heavy losses that briefly took the S&P 500 into correction territory. The benchmark index was down by about 4% at one point before a last-minute [..]

Fed meeting: Will asset purchases end early? – Forex News Preview

Posted on January 24, 2022 at 4:48 pm GMT

The main event this week will be the Fed’s policy decision at 19:00 GMT Wednesday. No action is expected, but with the markets pricing in four rate increases for this year, the central bank is likely to signal that normalization is imminent. There is also some speculation that asset purchases could come to an immediate end. That will likely decide the reaction in the dollar. Economic boom The US economic recovery has been very impressive. The economy is already much [..]

Technical Analysis – USDJPY slopes downwards after short-term rebound falters

Posted on January 24, 2022 at 8:31 am GMT

USDJPY has been plunging since early January when it recorded a five-year high of 116.33. Despite posting a moderate rebound after the pair found its feet at the 113.47 level, the price dipped again as positive momentum evaporated. The decline is likely to resume as short-term oscillators indicate a bearish near-term bias. The MACD histogram is found beneath both zero and red signal line, while the RSI is flatlining in the negative territory. Moreover, the 50-period simple moving average (SMA) [..]

Weekly Comment – FOMC and BoC interest rate decision in the spotlight

Posted on January 21, 2022 at 1:57 pm GMT

Stocks continued their selloff as demand for tech and high-growth companies has declined on the back of rising Treasury yields and geopolitical tensions in Eastern Europe. In the upcoming week, interest rate decisions from America and Canada will take center stage, together with updates on global economic activity from American, European, British and Japanese purchasing managers indices. Highlights: In America, the Fed will conclude its first FOMC meeting for the year on Wednesday, with Fed Chair Powell anticipated to set [..]

US Open Note – Stocks extend declines, dollar maintains resilience

Posted on January 21, 2022 at 1:19 pm GMT

Market sentiment deteriorates as yields remain elevated Wall Street’s correction continues to develop lower, with the tech-heavy Nasdaq 100 affected more, falling 4.6% yesterday. Despite this week’s disappointing US jobless claims, which rose 286k versus an expected 220k, potentially due to surging cases of Omicron, and the correction in the US equities – in an environment of elevated yields – the market story is likely to remain the same with the Fed moving forward with removing accommodation and delivering expected [..]

US Open Note – Market sentiment freezes, dollar largely unchanged

Posted on January 20, 2022 at 2:33 pm GMT

Markets digest US jobless claims and Philly manufacturing The US stock futures correction deepened as risk sentiment has remained negative, while the 10-year yield at 1.88% seems to be keeping the dollar buoyant. It appears the hawkish tone from the Fed has saturated markets and they have become less sensitive lately. The US economy is nearing full employment and today’s rise in jobless claims has managed to only nudge the dollar index slightly lower, stabilizing around the 95.40 level. The [..]

Technical Analysis – USDJPY eases slightly around 40-day SMA; indicators suggest more weakness

Posted on January 20, 2022 at 1:42 pm GMT

USDJPY is moving lower, touching the 40-day simple moving average (SMA) after the pullback off the 20-day SMA. Regarding the technical indicators, the MACD is weakening in the positive area, below its trigger line, while the RSI is sloping down to the negative region, both suggesting the next move could be to the downside rather than the upside. Lower lows around 113.45 and the long-term ascending trend line at 112.70 could provide immediate support if sellers continue to drive the pair lower. [..]

Inflation is driving up rate hike bets globally, so why does the dollar remain king? – Special Report

Posted on January 20, 2022 at 10:50 am GMT

It is now universally accepted that the pandemic-induced surge in inflation is no longer looking very transitory and central banks around the world are starting to hit the panic button. The US Federal Reserve is not only talking about rate hikes but wants to begin quantitative tightening soon. The Bank of England and Reserve Bank of New Zealand have already lifted rates at least once. Even the ultra-dovish European Central Bank is keeping its options open in terms of possibly [..]

US Open Note – Stocks fail to recover, dollar remains resilient

Posted on January 19, 2022 at 1:24 pm GMT

Elevated yields favour dollar, Canadian inflation in spotlight The primary market focus remains centred around the Fed and how it will tackle inflation, with market participants juggling the premise of how many rate hikes will unfold this year. Expectations almost ‘guarantee’ three hikes but the dollar’s recent gains have been fuelled by rising Treasury yields, which have supported the dollar index around the 95.60 mark. US stock futures are somewhat finding their feet after the correction, while the 10-year Treasury [..]

Daily Market Comment – Equities under fire, dollar shines as yields soar

Posted on January 19, 2022 at 9:45 am GMT

Stocks remain under pressure as traders position for Fed hikes Dollar outperforms, yen benefits from risk aversion, euro hammered Oil prices keep going, Canadian inflation stats in the spotlight All about the Fed Bets that the Fed will take a sledgehammer to crush inflationary pressures continue to escalate. More than four rate increases are now priced in for this year, which means traders have started to entertain the idea of either a fifth increase or a ‘double’ hike of 50 [..]

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