All Articles Tagged - USDJPY

Market Comment – Fed’s ‘higher for longer’ fuels dollar, yen flirts with intervention

Posted on September 27, 2023 at 7:58 am GMT

Dollar at 10-month highs, 10-yr yield jumps to new 16-year peak Dollar/yen extends uptrend, intervention risks grow Wall Street tumbles on a blend of investor concerns Dollar stands tall ahead of core PCE inflation The dollar traded higher against all the other major currencies on Tuesday and continued trading on the front foot today as well, with the dollar index hitting a fresh 10-month high. It seems that the Fed’s “higher for longer” mentality is still adding fuel to the [..]

Market Comment – Dollar at 10-month high as yields keep surging

Posted on September 26, 2023 at 9:07 am GMT

US 10-year yield hits 16-year high amid no letup in hawkish Fed rhetoric Dollar powers ahead, euro and pound crumble, yen in danger zone Stocks resume decline after late rebound on Wall Street Bond market rout deepens The selloff in bond markets is showing no sign of easing as investors are dumping government securities in favour of cash amid expectations that interest rates in the US may yet rise further. Despite the tightening cycle nearing its end, the hawkish drumbeat [..]

Weekly Technical Outlook – USDJPY, EURUSD, AUDUSD

Posted on September 25, 2023 at 3:09 pm GMT

US inflation could ease; will USD/JPY extend uptrend above 150? Eurozone inflation to soften too; EUR/USD at a make-or-break point Australian inflation to reverse higher; AUD/USD looks for a rebound US core PCE inflation –> USD/JPY The Fed’s favorite core PCE inflation index is expected to ease significantly to a new two-year low of 3.9% y/y on Friday at 12:30 GMT, erasing July’s moderate pickup to 4.3% y/y. If this turns out to be the case, the news could sound music to [..]

Technical Analysis – USDJPY is ready to challenge the 148.85 zone

Posted on September 25, 2023 at 11:52 am GMT

USDJPY continues to trade in an uptrend mode, above all EMAs Looking ready to challenge the 148.85 resistance barrier Both the RSI and the MACD detect positive momentum USDJPY is trading higher today, getting closer to the 148.85 zone, marked by the highs of October 31 and November 1. Overall, the pair remains in an uptrend mode, well above the upwards sloping trendline drawn from the low of March 24, and above all three of the plotted exponential moving averages (EMAs). All [..]

Market Comment – Fragile sentiment after weak PMIs, higher for longer message

Posted on September 25, 2023 at 9:35 am GMT

Mood sours amid hawkish Fed, recession fears and US shutdown risk Stocks mixed after last week’s losses as bond yields near cycle highs Dollar holds firm as yen under pressure after dovish Ueda Subdued sentiment as uncertainties weigh Trading got off to a mixed start on Monday as equities and the US dollar were lacking clear direction after the Fed doubled down on its ‘higher for longer’ stance and the flash PMIs reignited recession jitters. Powell’s hawkish tone at last [..]

Week Ahead – US core PCE and Eurozone flash CPIs eyed after rate pause signals

Posted on September 22, 2023 at 10:17 am GMT

PCE inflation to grab attention on Friday as Fed signals higher for longer But markets might be more worried about a government shutdown Eurozone flash CPIs will also be the in the spotlight on Friday Chinese PMIs to be watched for recovery signs Will core PCE add to second inflation wave worries? The latest spike in oil prices is causing some headaches for policymakers as energy costs are on the rise again just as they’ve started to see the result [..]

Market Comment – Stocks roll over as US yields climb to new highs

Posted on September 22, 2023 at 8:56 am GMT

Mayhem in US bond market spills over into stocks Dollar struggles to advance despite soaring yields Sterling sinks on BoE decision, yen retreats after BoJ US yields leap higher The storm in US bond markets has evolved into a hurricane, inflicting deep wounds on riskier assets such as stocks. Yields on US government bonds have gone ballistic, with the yield on ten-year notes hitting a fresh cycle high of 4.50% earlier today. When yields climb with such force, it has [..]

Market Comment – Hawkish Fed boosts the dollar, BoE and BoJ next

Posted on September 21, 2023 at 9:07 am GMT

Fed revises rate path higher, lifting dollar and yields Stock markets and gold move lower in the aftermath BoE decision today a coin toss, BoJ unlikely to move Fed commits to higher for longer The Federal Reserve kept interest rates unchanged yesterday, as widely expected, but revised its economic forecasts and interest rate projections higher. Reflecting the recent flow of resilient US data releases, the Fed raised its economic growth estimates for 2023 and 2024, softly signaling that the risk [..]

Technical Analysis – USDJPY struggles to break past 148.00 despite bullish momentum

Posted on September 20, 2023 at 10:08 am GMT

148.00 barrier proving difficult to overcome Still plenty of upside to achieve a break higher But bullish bias is showing signs of abating USDJPY has been knocking on the door of the 148.00 handle for the past couple of weeks but to no avail. It’s made somewhat more progress today, crawling slightly above that level. However, whilst the technical indicators remain positive, momentum does appear to be easing. The stochastic oscillator has flatlined inside the overbought region, suggesting a possible [..]

Could the BoJ upset expectations for a dull meeting? – Preview

Posted on September 20, 2023 at 9:42 am GMT

Amidst a very busy week, the BoJ holds its sixth rate-setting meeting Market is not expecting fireworks; there is increasing commentary about negative rates The decision will come on Friday 03.00 GMT, press conference shortly afterwards The week is expected to close on a high note The Bank of Japan is holding its sixth meeting for 2023 on Friday, two days after the key Fed meeting. Despite the yen’s underperformance making new headlines, the BoJ is not expected to announce [..]

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