All Articles Tagged - USDJPY

BoJ to keep its foot on the gas despite yen collapse – Forex News Preview

Posted on June 15, 2022 at 2:07 pm GMT

The Bank of Japan will conclude its latest meeting early on Friday. No policy shifts are on the cards, even though inflation has reached its elusive 2% target. This spells more pain for the yen, which has been slaughtered by rising yields abroad and a trade shock stemming from energy prices. On the bright side, the sharp downtrend seems to be entering its final phase. Pedal to the metal The Bank of Japan is now the only major central bank [..]

Daily Market Comment – Fed decision kicks off central bank bonanza

Posted on June 15, 2022 at 8:23 am GMT

Markets expect Fed to raise interest rates by 75 bps today ECB calls emergency meeting today too – time to close spreads? Yen and sterling retreat ahead of their own central bank meetings Fed playbook The next couple of days are loaded with central bank meetings, kicking off with the Fed decision today. A rate increase is almost certain as the Fed attempts to dismantle inflationary forces – the question is exactly how big this move will be and where [..]

Technical Analysis – USDJPY snaps tough resistance ahead of FOMC

Posted on June 15, 2022 at 7:08 am GMT

USDJPY managed to close clearly above the tough resistance of 134.35 on Tuesday before pulling back during Wednesday’s early European trading hours, boosting optimism that the bullish cycle could see further continuation ahead of the FOMC policy announcement today at 18:00 GMT. Some profit-taking cannot be ruled out in the short term as the RSI and the Stochastics seem to have reached a peak in the overbought territory and are looking for an exit, while the advance in the MACD seems to be losing [..]

Fed policy meeting: Switching to sharper rate hikes? – Forex News Preview

Posted on June 14, 2022 at 3:36 pm GMT

The Federal Reserve is undoubtedly expected to approve another jumbo-sized rate hike at the conclusion of its policy meeting on Wednesday at 18:00 GMT. Following the latest surprise pickup in inflation, investors have immediately become certain that the central bank may proceed with a triple rate increase in the following two meetings, though whether the Fed will violate its guidance to meet market expectations remains to be seen. If it moves forward, traders will probably need good assurances that the [..]

Daily Market Comment – Fed bets embolden US dollar bulls, nuke stock markets

Posted on June 14, 2022 at 8:50 am GMT

Markets in disarray as traders scramble to price in Fed warpath S&P 500 enters bear market, crypto implodes, dollar powers up Despite all the panic, there’s also some encouraging news Bear market blues All hell has broken loose in financial markets. Another scorching hot US inflation report shattered hopes that the Fed might be able to take its foot off the brakes later this year, sending traders scrambling to recalibrate the trajectory for interest rates and wreaking havoc in every [..]

Technical Analysis – USDJPY still bullish but loses momentum after topping 135 level

Posted on June 13, 2022 at 3:39 pm GMT

USDJPY has turned negative on the day after earlier rallying to a 24-year high of 135.19. The momentum indicators suggest there is plenty of bullish steam left even as the risk of a deeper downside correction grows. The MACD histogram continues to climb well above its red signal line, which is also sloping upwards. But the stochastics are in extreme overbought territory and have started to dip down in a possible sign that today’s losses may just be the beginning. [..]

Daily Market Comment – Dollar and yields surge after US inflation jump, stocks sink

Posted on June 13, 2022 at 9:15 am GMT

US CPI unexpectedly accelerates in May, fuelling fears of more big Fed rate hikes Wall Street tanks, dollar firms as yields keep rising ahead of central bank meetings Pound tumbles as UK economy sounds recession alarm bells, yen breaches 135 level No inflation peak in sight Inflation in the United States jumped to a fresh 40-year high of 8.6% y/y in May, confounding expectations that it would hold steady at 8.3%. The month-on-month rate increased by a shock 1% and [..]

Week Ahead – Fed gets ball rolling in busy central bank week

Posted on June 10, 2022 at 9:54 am GMT

The coming week is loaded with central bank meetings to shake things up in the FX arena. Fed officials are almost certain to raise rates by half a percentage point, so markets will be driven mostly by their future projections. The Bank of England could also lift rates but strike a cautious tone. Nothing is expected in Japan, while Switzerland might disappoint those looking for immediate action. Fed to keep options open The Federal Reserve has long telegraphed a 50 [..]

Daily Market Comment – ECB stokes recession, debt fears; dollar rally cools but stocks struggle still

Posted on June 10, 2022 at 9:18 am GMT

Hawkish ECB spurs Eurozone yields to multi-year highs but euro flounders Dollar reclaims FX crown as all eyes now turn to US CPI report Growth and inflation worries dog equities but China bucks trend despite new lockdowns ECB joins global inflation fight, roils markets The European Central Bank laid out a path to terminating all asset purchases and launching a series of rate hikes on Thursday as it sharply raised its inflation forecasts. But although the move was widely expected [..]

Daily Market Comment – Euro steady ahead of ECB decision, stocks drift lower

Posted on June 9, 2022 at 9:28 am GMT

Euro holds around $1.07 ahead of expected ECB stimulus pullout Elevated yields and oil prices weigh on equities, some relief from China trade jump Yen snaps losing streak, dollar gets caught in sideways range in CPI wait Cautious calm before ECB amid hawkish risks The European Central Bank meeting is undoubtedly the focal point for investors on Thursday in what could turn out to be the most important policy shift since Draghi’s ‘whatever it takes’ moment. After years of quantitative [..]

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