All Articles Tagged - USDJPY

Daily Market Comment – Powell calms inflation nerves; dollar and yields dip but stocks unfazed

Posted on July 15, 2021 at 9:13 am GMT

Fed chief Powell plays down inflation spike, says tapering is “a ways off” Dollar and yields head back down before virus fears re-emerge, yen climbs Equities only modestly boosted as growth concerns weigh after China GDP miss Powell soothes nerves but hints at U-turn Fed Chair Jerome Powell sought to allay growing worries that the bout of higher inflation is here to stay and that stimulus would have to be dialled back soon when testifying before lawmakers on Wednesday. While [..]

US Open Note – Greenback extends pullback before Powell’s testimony

Posted on July 14, 2021 at 1:02 pm GMT

Dollar declines ahead of Powell’s testimony Fed Chair Powell will today testify in front of the House, and tomorrow, he will testify in front of the Senate. Right now, his opinions are well-known and is expected to keep QE as open-ended as possible, but if the US data continues to heat up, the expectation is that something more conclusive will come at either the August Jackson Hole Symposium or the September 21-22 FOMC meeting. Fed Governor Daly stated yesterday that it is time to talk about tapering, and [..]

Technical Analysis – USDJPY fails to beat 20-day SMA; holds in ascending channel

Posted on July 14, 2021 at 6:48 am GMT

USDJPY is facing strong resistance at the 20-day simple moving average (SMA) near 110.60, looking set for a red session after three consecutive green days. Previously, the 23.6% Fibonacci retracement level of the up leg from 102.60 to 111.65 at 109.50 managed to defend the bulls, holding the price within an ascending channel. Looking at the technical indicators, the RSI is pointing south, ready to cross back below its 50 neutral mark, while the MACD is losing momentum in the positive region. If the pair successfully jumps above the [..]

Bank of Japan meeting: going in the same direction – Forex News Preview

Posted on July 13, 2021 at 1:54 pm GMT

The mini risk-off episode last week reminded investors that safe havens such as the Japanese yen have the ability to regain bullish potential in a post-vaccination environment as long as Covid variants keep running rampant. However, when it comes to the Bank of Japan’s policy meetings, room for improvement is traditionally limited for the yen. Friday’s policy announcement (tentative time) could confirm that once again as policy settings are largely expected to remain steady, while a potential downgrade in quarterly [..]

US Open Note – Stocks dip from record highs and dollar soars after CPI beat

Posted on July 13, 2021 at 1:50 pm GMT

Markets digest key US inflation data Market composure and the subdued volatility in the forex arena quickly faded as today’s US CPI data beat expectations. US major indices dived from their tops as much stronger inflation figures jolted markets, causing jitters in the currency markets as well, shaping into dollar-driven volatility throughout the forex arena. It will be interesting to see the rhetoric in Fed Chairman Jerome Powell’s testimony in the coming days relating to the recovery, price pressures and [..]

Daily Market Comment – Wall Street hits record before earnings kickoff, dollar holds firm

Posted on July 13, 2021 at 9:14 am GMT

Earnings optimism drives US equities to fresh record highs ahead of bank results Risk appetite still shaky in FX markets, dollar and yen resist deeper selloff US inflation data and Powell testimony will be key in directing sentiment Wall Street rallies as reopening boost eyed It’s the start of the second quarter earnings season and optimism is running high that the reopening of the US economy will power corporate earnings to new peaks. The new season will properly kick off [..]

US CPI inflation, retail sales in the spotlight as risk-off mood calms – Forex News Preview

Posted on July 12, 2021 at 4:02 pm GMT

Following the risk-off impulse last week, the focus will turn to US CPI figures on Tuesday (12:30 GMT), industrial production (13:15) on Thursday and retail sales (12:30 GMT) on Friday as question marks remain about whether and how the Fed will start its bond tapering phase. However, unless big surprises happen, the data may not move the US dollar much. US covid situation stable despite latest pickup US Covid infection cases inched to the highest level since mid-May last week, [..]

Technical Analysis – USDJPY surpasses 110.00 and 200-period SMA in near term

Posted on July 12, 2021 at 1:27 pm GMT

USDJPY is jumping above the 110.00 handle, which is the 23.6% Fibonacci retracement level of the down leg from 111.65 to 109.52. The 200-period simple moving average (SMA) resides with the 20-period SMA, both acting as crucial resistance barriers for the bulls. The RSI is sloping marginally up in the negative territory, while the stochastic is advancing after a dive from the overbought zone. If the market manages to pick up speed, the 38.2% Fibonacci level at 110.33 could offer [..]

US Open Note – Dollar soars ahead of busy week; commodities ease

Posted on July 12, 2021 at 12:35 pm GMT

Dollar’s strong move drives euro lower Ahead of a busy week, the dollar is moving higher against a basket of currencies. Dollar/yen is holding above the 110.00 handle, developing within the short-term simple moving averages (SMAs), while US futures are mixed before the market opens. Euro/dollar is slipping below the 1.1850 level as ECB President Lagarde warned investors to expect new monetary stimulus guidelines in the next ten days and hinted that more measures to help the euro-area economy may [..]

US Open Note – Markets cool down after a messy week despite China’s RRR cut

Posted on July 9, 2021 at 1:26 pm GMT

Stocks get on their feet ahead of earnings Markets took a breather at the end of a turbulent week, which suddenly derailed hopes of a swift economic recovery and promoted self-realization that the vaccination program alone may not be enough to re-establish the pre-Covid normality. The pan-European STOXX 600 is currently up by around 1.0%, having recouped a large share of yesterday’s losses, with consumer cyclicals, basic materials, and real estate enjoying the biggest gains. The index, however, is still [..]

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