All Articles Tagged - USDJPY

Technical Analysis – USDJPY trades parallel with SMAs; neutral bias in short-term

Posted on November 8, 2021 at 8:21 am GMT

USDJPY has been in a sideways move after peaking at a fresh four-year high of 114.70 on October 20. The 20- and 40-period simple moving averages (SMAs) and the Ichimoku cloud are confirming the recent neutral bias. However, the stochastic is creating a bullish crossover within the %K and %D lines in the oversold zone, while the MACD oscillator is in the process to surpass its trigger line in the negative region. Both are suggesting that the next move may be to the [..]

US Open Note – Nonfarm payrolls don’t impress dollar; Canadian jobs data mixed

Posted on November 5, 2021 at 2:41 pm GMT

Central banks keep faith in transitory inflation Central banks showed sympathy to people’s fears of high inflation the past two weeks but clearly rejected the strong rate hike pricing in markets for the next year, clarifying that they will remain faithful to their initial assessment of temporary inflation, and hence, keep borrowing costs steady, even if the transitory phase lasts a bit longer. Investors did not completely digest the recent dovish talk on interest rates and perhaps higher rates will [..]

Technical Analysis – USDJPY loses momentum below 4-year high

Posted on November 5, 2021 at 1:26 pm GMT

USDJPY has been trading sideways over the last three weeks, with the upper boundary the 114.70 resistance and lower boundary the 113.40 support area. Currently, the MACD oscillator is losing ground below its trigger line in the positive region, while the RSI is falling above the neutral threshold of 50. Immediate support to further declines may take place around the 113.40 barrier, while the 40-day simple moving average (SMA) at 112.30 could provide additional support in case of steeper losses ahead [..]

Daily Market Comment – BoE sinks pound, roils bond markets; All eyes now on NFP

Posted on November 5, 2021 at 9:57 am GMT

BoE shocks markets by not raising rates as expected, pound crashes below $1.35 Bond yields slump globally as central banks push back on investors’ rate hike pricings Dollar stands tall, Wall Street at a record ahead of October payrolls report BoE: the unreliable boyfriend strikes again The messaging was clear, or so everyone thought. Repeated signalling by Bank of England Governor Andrew Bailey that the Bank will need to act to keep a lid on surging inflation had led markets [..]

US Open Note – BoE rate surprise squeezes pound to monthly lows; oil rallies ahead of OPEC

Posted on November 4, 2021 at 2:40 pm GMT

BoE: Barking without bite Investors have been running ahead of central banks’ plans lately, growing confident that interest rates would rise earlier than previously anticipated as global inflation shows no signs of abating. In the UK though, the strong market pricing for a 15 bps rate hike had been somewhat reasonable. Policymakers, including Governor Andrew Bailey, had been constantly calling for a tighter monetary policy after showing willingness to raise interest rates before the bond tapering phase starts, citing the [..]

Daily Market Comment – Dollar holds firm but yields slip ahead of Fed decision

Posted on November 3, 2021 at 10:14 am GMT

Bond yields pressured amid risk of Fed following RBA in pushing back on early rate hike Softer start for stocks after Wall Street notches up another record close Aussie and kiwi recoup losses but pound mired in BoE uncertainty Oil skids on inventories build-up, mounting pressure on OPEC Bond markets choppy as Fed awaited for liftoff clues Markets are gearing for the Fed’s long-anticipated taper announcement on Wednesday when the world’s most important central bank will formally call time on [..]

Technical Analysis – USDJPY constrained below 114.00 ahead of FOMC policy decision

Posted on November 3, 2021 at 8:33 am GMT

USDJPY has been constrained between the support-turned-resistance trendline and the 20-day simple moving average (SMA) over the past week, unable to clearly close above the 114.00 level ahead of the FOMC policy announcement. The upward slope in the shorter-term SMAs is endorsing the bullish market structure from September’s lows, but the momentum indicators are foreseeing depressed trading in the coming sessions. Specifically, the RSI continues to make lower highs and lower lows towards its 50 neutral mark, the MACD remains [..]

FOMC policy meeting: Taper time but eyes on rate signals – Forex News Preview

Posted on November 2, 2021 at 5:29 pm GMT

What distinguishes the Fed from other key central banks is its confidence over bond tapering. On Wednesday at 18:00 GMT, the Fed is widely expected to announce that its bond program, which massively expanded its balance sheet over the past two years to fight the economic shock from the pandemic, has done its job. The news, however, is already well telegraphed; therefore, the policy statement itself may not affect the dollar. However, a bulk of questions on inflation and future rate hikes will [..]

Daily Market Comment – Fading energy worries revive optimism

Posted on November 2, 2021 at 9:58 am GMT

New records for Wall Street as cooling energy prices pull yields down RBA plays down early rate increases, torpedoes Australian dollar US dollar, British pound, and oil prices await crucial events New highs The US stock market continues to trade like a runaway freight train. All three major indices on Wall Street closed at new record highs to kick off the new month, basking in the glory of a solid earnings season and some signs that the worst of the [..]

US Open Note – Stocks mark a rosy start to the month; FX markets in quiet trading

Posted on November 1, 2021 at 2:59 pm GMT

New record highs for stocks Looking solely at stock markets, one could get the impression that nothing goes wrong, and the remaining pandemic constraints are just a tentative phenomenon, which still allows economies to run up and grow. Of course, some key stocks such as Facebook and Amazon could not jump back into uncharted waters following their earnings releases last week, though overall, guidance from businesses has surprisingly signaled little concern about their future performance. As a result, the pan-European [..]

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