All Articles Tagged - USDJPY

Technical Analysis – USDJPY rebounds but stays in downtrend

Posted on January 16, 2023 at 4:04 pm GMT

USDJPY has been trading slightly higher today as, despite last week’s strong slide, the bears failed to touch the low of May 24 at 126.35. Overall, though, the pair continues to trade below the downtrend line drawn from the high of October 21, as well as below all the plotted exponential moving averages. All these technical signs paint a negative near-term picture. The short-term oscillators suggest that the recovery may continue for a while longer before the bears decide to jump into [..]

Speculation of BoJ policy shift heats up as yield cap comes under pressure – Forex News Preview

Posted on January 16, 2023 at 11:29 am GMT

The Bank of Japan will kick off the central bank policy decisions of 2023 when it begins its two-day meeting on Tuesday, with the outcome expected in the early hours of Wednesday. Although it was only at the last meeting in December when policymakers tweaked their yield curve control (YCC) strategy, a further change in policy cannot be ruled out in January. The Bank’s upper yield cap has come under attack again amid speculation that it will further widen the [..]

Daily Market Comment – Yen, gold, and stock markets power higher

Posted on January 16, 2023 at 9:29 am GMT

Yen goes on a rampage ahead of crucial BoJ decision this week Gold hits new highs, driven by Fed speculation and softer dollar Euphoria engulfs markets as stocks, crypto, and risk-linked FX gain Yen soars ahead of BoJ After sinking to the depths of Hades last year, the Japanese yen has staged a spectacular comeback. It is currently tied with the Australian dollar as the best-performing major currency this year, capitalizing on a perfect storm of narrowing interest rate differentials, [..]

Technical Analysis – USDJPY gets hammered as bears take control

Posted on January 13, 2023 at 1:28 pm GMT

USDJPY is back on a downtrend after Thursday’s aggressive sell-off pressed the pair to six-month lows, with the price further easing on Friday to a new trough of 128.10. The price could not find enough buyers to climb above the 20-day simple moving average (SMA) and exit the bearish channel, plummeting by 2.4% in the aftermath. According to the momentum indicators, the bears may keep leading the market in the short term as the RSI and the stochastic oscillator have yet to enter the [..]

Fed nears a hiking pause – history points to recession and possible October 2023 rate cut – Special Report

Posted on January 13, 2023 at 12:04 pm GMT

The Federal Reserve Bank has been on an aggressive tightening path since March 2022. A total of 425 bps of rate hikes have pushed the Fed Funds Rate to 4.25%, the highest level since December 2007. The market is pricing in an extra 58 bps of rate hikes by June 2023, but numerous forecasters have been quite vocal that the Fed could be making its last tightening move in the first quarter and then opting to pause. It appears quite plausible [..]

Week Ahead – Will the Bank of Japan roll out another surprise?

Posted on January 13, 2023 at 11:09 am GMT

A volatile week awaits FX traders, featuring the first Bank of Japan decision of the year. It’s a close call whether policymakers will adjust their yield strategy once again, although even if they don’t, it’s probably only a matter of time. There’s also a deluge of data releases from the major economies. Tough decision for BoJ The Bank of Japan shocked financial markets last month when it raised the ceiling on long-term Japanese yields, a decision that turbocharged the yen. [..]

Daily Market Comment – Dollar extends slide as US inflation cools further

Posted on January 13, 2023 at 9:33 am GMT

US inflation cools further, declines in monthly terms Dollar slides on Fed-pivot trade Yen and euro the main gainers against greenback Equities extend recovery, earnings season begins Dollar takes another hit from the US inflation data The US dollar slid against all the other currencies on Thursday, with the main gainers being the yen and the euro. Once again, the US inflation data proved to be the greenback’s biggest nightmare. Both the headline and core CPI rates for December declined [..]

Daily Market Comment – Investors lock gaze on US inflation numbers

Posted on January 12, 2023 at 9:16 am GMT

Dollar trades mixed ahead of US CPI data Inflation expected to further slow Euro, yen could continue outperforming the dollar Wall Street trades in the green on inflation optimism Will US CPI numbers corroborate the Fed pivot view? The US dollar traded mixed against the other major currencies yesterday and continued in a similar fashion today. Apart from some moves triggered by stories related to other currencies, dollar traders seem to be avoiding heavy positioning ahead of today’s US CPI [..]

Technical Analysis – USDJPY ticks marginally up, but momentum is weak

Posted on January 11, 2023 at 8:24 am GMT

USDJPY is moving slightly higher within the medium-term downward sloping channel, but the momentum is weak to continue the bullish structure above the 50.0% Fibonacci retracement level of the upward wave from 114.64 to 151.93 at 133.10. The MACD is rising somewhat above its trigger line in the bearish area; however, the RSI is flattening in the negative territory. Also, the 50- and the 200-day simple moving averages (SMAs) are approaching each other suggesting a death cross in the next [..]

Technical Analysis – USDJPY pauses decline, but downtrend remains intact

Posted on January 9, 2023 at 9:38 am GMT

USDJPY has been stuck in a downtrend in the four-hour chart, with the restrictive trendline formed from its recent lower highs repeatedly capping any upside moves. In the last couple of four-hour sessions, the pair’s retreat has come to a halt but efforts for recovery are currently meeting resistance at the 50-period simple moving average (SMA). The short-term oscillators are indicating that near-term risks are tilted to the downside. Specifically, the MACD histogram is softening below its red signal line [..]

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