All Articles Tagged - USDJPY

Technical Analysis – USDJPY’s positive drive debatable as sellers resurface

Posted on November 1, 2021 at 1:06 pm GMT

USDJPY has recently regained its buoyancy with a bounce off the base of 113.00-113.25, but bullish forces are looking vulnerable around the upper Bollinger band at 114.36 and ahead of the near 4-year high of 114.69. The 50-period simple moving average (SMA) is exhibiting a slight preference to the upside, while the advancing longer-term SMAs are endorsing the positive trend in the pair. The short-term oscillators are reflecting conflicting messages in directional impetus. The falling RSI and stochastic lines are [..]

Daily Market Comment – Investors hold their nerve as policy tightening looms

Posted on November 1, 2021 at 9:48 am GMT

Equities shrug off weak China PMI data on hopes of more fiscal stimulus in US and Japan Dollar attempts to extend gains as investors zero in on liftoff timing Aussie and pound slip ahead of RBA and BoE meetings Positive start to month as markets look past China jitters Global equities have started November mostly in positive territory, buoyed by fresh all-time highs by Wall Street’s leading indices on Friday. Optimism seems to be the name of the game as [..]

US Open Note – Stocks near highs, dollar licks its ECB wound

Posted on October 29, 2021 at 1:35 pm GMT

Infrastructure negotiations to delay Biden’s deal a bit and September PCE in focus US stock futures and the dollar have been trying to make sense of all drivers in the market, with a packed week of data, central bank decisions, earnings making their mark, an energy crisis hurting China, the eurozone and the UK, and infrastructure talks in its final stages. Despite Thursday’s miss in US Q3 GDP results, the recently elevated dollar seems to have kept its resilience and [..]

Daily Market Comment – Euro spikes higher as ECB fails to convince markets

Posted on October 29, 2021 at 9:28 am GMT

ECB strikes a dovish tone but investors just don’t buy it Bond market pricing in slowdown, US spending deal done Tech earnings disappoint, Japanese elections on the menu Teflon euro The European Central Bank said all the right things yesterday. President Lagarde highlighted that market expectations for a rate increase next year are not realistic and stressed this inflation episode remains transitory, but the euro still stormed higher alongside European yields. Investors are just not buying what the ECB is [..]

ECB plays down rate hike scenario but euro flies to fresh session highs – US Open Note

Posted on October 28, 2021 at 2:21 pm GMT

Global flattening of yield curves A flattening of global bond yield curves gained momentum on Thursday, ratcheting concerns about the pace of economic growth as more central banks start to signal higher interest rates in the foreseeable future amid the persisting inflationary pressures. Specifically, the 2-year Treasury yield climbed to the highest since March 2020 on Wednesday, narrowing the gap with the 10-year yield, while the Canadian and Australian equivalents marked a multi-year daily increase following the hawkish rate statement from [..]

Daily Market Comment – Will ECB fight market pricing for early rate hikes?

Posted on October 28, 2021 at 8:18 am GMT

ECB could tone down market expectations today, hurting euro Loonie jumps after BoC terminates QE program but oil prices weigh Stocks retreat amid worries of central bank error, US GDP eyed Euro reality check? The spotlight will fall on the European Central Bank (ECB) today, which will conclude its latest meeting at 11:45 GMT. Stagflation risks have engulfed the euro area economy lately with the mayhem in supply chains, collateral damage from China, and the calamity in energy prices threatening [..]

US Open Note – Bank of Canada takes center stage; dollar loses momentum

Posted on October 27, 2021 at 1:11 pm GMT

BoC rate decision coming up The Bank of Canada’s interest rate decision is the main event of the day. Policymakers are predicted to leave rates unchanged at 0.25%. Economic growth has fired up, inflation is hot, businesses are feeling optimistic, the housing market is booming, and oil prices continue to climb. Macroeconomic projections that will be updated may provide some hints. The CPI for September came in at 4.4% year on year, more than double the target of 2% and significantly higher than the intended range of 1-3%. Retail sales and employment data [..]

Technical Analysis – USDJPY takes a breather before rallying again

Posted on October 27, 2021 at 7:04 am GMT

USDJPY has rebounded off the 113.40 support level with the simple moving averages (SMAs) following the market action. However, the MACD oscillator is diving below its trigger line in the positive region, while the RSI is sloping down around the 70 level. Both are suggesting that the next move may be to the downside rather to the upside. If the pair slips below the 113.40 barrier, it could take the market towards the 20-day SMA at 113.00 ahead of the [..]

Bank of Japan: the lone dove meets as inflation remains elusive – Forex News Preview

Posted on October 26, 2021 at 4:00 pm GMT

As surging inflation rocks central banks around the world, nothing much has changed at the Bank of Japan where the 2% inflation target is as elusive as ever. The Bank is due to announce its latest policy decision on Thursday, but rather than sound the alarm bells over spiralling price pressures like some of their peers have, policymakers will likely lower their inflation forecasts for this year. The yen has taken a hammering lately as Japanese yields have been unable [..]

US Open Note – Stocks around highs, dollar flat, and gold’s resilience tested

Posted on October 26, 2021 at 2:04 pm GMT

Sentiment improves but focus remains on BOC, ECB, and US GDP figures The dollar seems to be flat ahead of Thursday’s GDP figures, scheduled for 12:30 GMT. Even if the GDP figures disappoint, the damage could be largely short-lived because on the horizon is an FOMC meeting on November 3, expected to signal the start of tapering and possibly depict a clear tapering timeline. Moreover, an imminent huge infrastructure bill is on the cards, which the US Congress is working [..]

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