All Articles Tagged - USDJPY

US Open Note – Dollar eases ahead of FOMC minutes

Posted on January 5, 2022 at 1:27 pm GMT

Investors are expecting the release of the FOMC minutes and, more crucially, the release of non-farm payrolls in the US later this week. Following a robust surge in government bond yields, the yen has remained the currency with the worst performance for the time being. The pound has managed to outperform the euro. Although the dollar is the second strongest currency, it is still stuck in a range, except against the yen. FX market view and FOMC minutes expectation The dollar is weakening ahead of the ADP employment [..]

Daily Market Comment – Sterling shines as yields rally, stocks mixed

Posted on January 5, 2022 at 9:52 am GMT

Global spike in yields boosts sterling and US dollar, crushes yen Stock markets mixed as traders rotate towards ‘cheaper’ sectors Fed minutes and ADP jobs report coming up today Sterling leads the pack Every asset class has been dancing to the tune of rising bond yields this week. The bond market is essentially saying that some central banks will raise interest rates with force to combat inflation and that the Omicron outbreak is not enough to derail those plans, or [..]

Technical Analysis – USDJPY looks overbought after sharp ascent; bullish overall

Posted on January 5, 2022 at 8:38 am GMT

USDJPY resumed its broad positive trend after the bulls drove aggressively to a five-year high of 116.33 on Tuesday, marking seven consecutive days of gains. Despite the fast ascent, the pair could not close above the 116.11 limitation taken from late 2016 and start of 2017, with the price sliding back to the negative territory during the early trading hours today. A deceleration cannot be ruled out in the coming sessions as the market seems to be trading in overbought waters according [..]

US Open Note – Dollar hits five-year high against yen; OPEC next on the radar

Posted on January 4, 2022 at 1:45 pm GMT

Omicron virus does not affect economic recovery Despite concerns about the extremely contagious omicron virus subtype, investors are focusing on the economic recovery from the pandemic and central bank’s plans for stimulus reduction at this time. In the FX market, the focus today is on dollar/yen, which surged to a new five-year high of 116.33 as risk-on sentiment pressed safe-haven currencies such as the yen. It may be difficult for sellers to reverse the trend. The BOJ will stay the most dovish, so the weak [..]

Technical Analysis – USDJPY tops at 5-year high; enters overbought area

Posted on January 4, 2022 at 10:33 am GMT

USDJPY staged an impressive rally early on Tuesday, piercing above its recent top of 115.51 to mark a five-year high at 115.88. While the aggressive pickup has sent the RSI and the Stochastics into the overbought territory in the four-hour chart, making any downside corrections reasonable near the upper boundary of a narrow upward-sloping channel, the indicators have yet to show any convincing signs of weakness, keeping the risk tilted to the upside for now. Next resistance could pop up around 116.11, [..]

Daily Market Comment – Stocks march higher, yen blasted as traders take on risk

Posted on January 4, 2022 at 9:55 am GMT

Investors load up on riskier assets, dump safe havens as new year begins US stocks hit new records, dollar follows yields higher, yen gets hammered OPEC meeting and ISM manufacturing survey coming up today Funds position for new year A sense of optimism dominated on the first trading day of the year. Money managers loaded up their books with riskier assets such as equities and dumped defensive plays like bonds, positioning themselves for another stellar year in financial markets. With [..]

Technical Analysis – USDJPY faces downside risks; overall bullish outlook remains

Posted on January 3, 2022 at 8:51 am GMT

USDJPY has powered back from its December low, crossing above the 50- and 200-period simple moving average (SMA). Moreover, the 50-period SMA has crossed above the 200-period SMA, reviving hopes of a sustained bullish outlook. However, the pair is currently trading near its upper Bollinger Band, indicating that an immediate downward movement should not be ruled out. Short-term momentum indicators are supporting a negative bias as the RSI is located above its 70 overbought region, signalling that an imminent pullback [..]

Week Ahead – NFP report to kick off New Year, inject life into muted FX market

Posted on December 30, 2021 at 4:18 pm GMT

Markets have been dead quiet during the holiday period but the upcoming week is guaranteed to bring increased volatility. The nonfarm payrolls report along with the FOMC minutes and a host of other US data are bound to wake markets up, while employment and inflation numbers out of Canada and the Eurozone, respectively, should also liven things a little. Although several major pairs have been rebounding against the US dollar and Wall Street has been notching up one record high [..]

Weekly Comment – US jobs and PMI data eyed as Omicron cases surge

Posted on December 30, 2021 at 2:47 pm GMT

Stocks staged a post-Christmas rally, reaching new highs amid thin trading volumes. Meanwhile, the Japanese yen has emerged as the undisputed loser in the FX arena, as Omicron fears ease, prompting traders to shift into riskier assets. In the upcoming week, the latest US employment data and FOMC minutes take center stage, together with a raft of PMI data from most major economies and European flash inflation figures. Highlights: Final Manufacturing PMI data for the Eurozone, US, UK, Japan and [..]

US Open Note – US stock futures at record highs, dollar ticks slightly higher

Posted on December 30, 2021 at 2:28 pm GMT

Positive sentiment supported by strong US jobless claims US stock futures have managed to remain near record highs, while trading volumes have narrowed and liquidity is drying up as the trading doors near closure for 2021. The question at year end is what effects from the rapidly spreading Omicron variant will rollover into the new year, especially as infections have been hot. Also, how will economies start to fare in the new year with an environment where stimulus is diminishing, [..]

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