All Articles Tagged - USDJPY

US Open Note – Dollar up, stocks sharply lower ahead of Powell’s testimony

Posted on February 23, 2021 at 2:10 pm GMT

Waiting for Powell to respond to inflation expectations Rising inflation expectations and the rally in bond yields will be examined during Powell’s semi-annual testimony before the Senate at 15:00 GMT as markets will be eagerly waiting for the Fed chief to update his views regarding price growth, economic expansion and the outlook for monetary policy. Although Powell may prefer to play it safe, reiterating that downside economic risks continue to linger in the background and that it is too early [..]

US Open Note – Wall Street could open with tears as bond yields weigh

Posted on February 22, 2021 at 2:16 pm GMT

Euro holds resilient above 1.2100; European stocks set for a negative close World shares kicked the week off on a negative note as the endless rally in bond yields made equity valuations look more stretched than they already are. Discussions about reopening plans in Europe created optimism that the vaccine rollout, although delayed, could put the region on a positive path, with investors turning somewhat sensitive to data releases for any early sign. Hence, the upside surprise in the German [..]

Daily Market Comment – Stocks under fire, dollar breathes as bond yields soar

Posted on February 22, 2021 at 9:41 am GMT

Relentless grind higher in bond yields bites stocks, stabilizes dollar Dollar becoming the US currency again, instead of a safe haven? Yen crumbles despite risk-off mood, sterling shines, gold adapts Bond market ruins the party in equities The non-stop rally in global bond yields has started to infect other asset classes, bringing the party in stock markets to a halt and breathing some life back into the devastated US dollar. There hasn’t been any major news, so this repricing appears to be [..]

Technical Analysis – USDJPY increases again but still below 5-month high

Posted on February 22, 2021 at 7:46 am GMT

USDJPY is on course for a third straight session of gains, which have taken the pair from below the 105.25 support to a retest of the 20-period simple moving average (SMA) around 105.65 in the 4-hour chart. The momentum indicators are supportive of the bullish picture, with the RSI rising into positive territory above 50, while the stochastic is heading north to overbought zone. A rally even higher could take the market until the five-month high of 106.20 ahead of [..]

US Open Note – Stock bears dig deeper; pound jumps to fresh highs

Posted on February 18, 2021 at 2:12 pm GMT

The calm after the rally Investors will have to wait for the next Fed policy meeting and for progress in Biden’s $1.9 trillion stimulus plans before they adjust their rising inflationary expectations. For now, the FOMC meeting minutes, which were released late on Wednesday, have ensured markets it will take some time before inflation and the unemployment rate push the Fed to remove some stimulus. Hence, US Treasury yields, which were last trading around 1.30%, may take the back seat after a [..]

US Open Note – US Retail sales add to rising inflation bets; FOMC minutes next in the spotlight

Posted on February 17, 2021 at 2:08 pm GMT

Dollar bulls positively charged by rising yields Hopes for a robust recovery and expectations that inflation may pick up steam faster than markets believed continued to feed risk-on appetite during late European hours, keeping the 10-year Treasury yield near today’s peak of 1.33%. The strong upturn has yet to scare stock markets, though some weakness is evident today, with US futures pointing to a neutral open as European equities are preparing to close the day with moderate losses. Although demand [..]

Technical Analysis – USDJPY unlocks 5-month high above 200-day SMA

Posted on February 17, 2021 at 1:46 pm GMT

USDJPY has been developing in an upside sloping channel over the last month, creating a fresh five-month high of 106.21. From the technical viewpoint, the RSI is flirting with the overbought territory, while the MACD is pointing up above its trigger and zero lines. Both are suggesting an overbought market and a downside retracement is possible. Also, the 20- and 40-day simple moving averages (SMAs) completed a bullish crossover in the previous sessions. Any advances above the immediate resistance, which is the [..]

Daily Market Comment – Rising US yields resuscitate dollar, scare equities

Posted on February 17, 2021 at 9:53 am GMT

Treasury yields jump again as stimulus draws closer, inflation bets continue to rise Dollar soars against yen, crashes gold; stocks ease back but no sign of panic Oil holds firm amid US disruptions, copper surges on growth optimism Yields rise across the board but only dollar shines The yields on long-term Treasury notes have been creeping higher again as investors continue to price in a mega stimulus package in the United States. But it’s not just expectations of record debt [..]

FOMC meeting minutes: looking for new twists – Forex News Preview

Posted on February 16, 2021 at 10:59 am GMT

Wednesday could turn into a perplexing day for the US dollar, as investors may find themselves wondering whether or not monetary stimulus may remain super accommodative in the year ahead. On the one hand, the minutes of the Federal Reserve’s January policy meeting (19:00 GMT) could remind markets that tapering bond purchases would be a premature decision given the current conditions. On the other hand, retail sales (13:30 GMT) may raise doubts about how firm the decision to refrain from tapering actually is. Moving in the right direction During January’s press conference, [..]

Daily Market Comment – Yen crumbles as vaccine optimism intensifies, stocks extend gains

Posted on February 16, 2021 at 10:00 am GMT

Safe-haven yen sold across the board as vaccine rollouts fuel hopes of a swift recovery Stocks continue to soar even as global yields creep higher, but dollar fights back Pound scales fresh highs as aggressive vaccination campaign shines light on UK assets Vaccines keep optimism running high The expansion in the global rollout of Covid-19 vaccines drove risk appetite to new heights on Tuesday as investors became more confident that inoculating against the deadly virus will lead the global economy [..]

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