All Articles Tagged - USDJPY

Technical Analysis – USDJPY rangebound as bearish bias wanes

Posted on May 23, 2022 at 7:52 am GMT

USDJPY has been trending downwards after peaking at the 20-year high of 131.34 in early May. Nevertheless, in the past few four-hour sessions, the pair has managed to halt its decline and is currently moving sideways. The momentum indicators also suggest that negative momentum is cooling off. Specifically, the MACD histogram has jumped above its red signal line but remains in the negative territory, while the RSI is ticking upwards beneath its 50-neutral threshold. Should positive momentum intensify, the pair [..]

US Open Note – Dollar loses ground after five weeks of gains

Posted on May 20, 2022 at 1:03 pm GMT

Dollar index ticks down as euro approaches $1.06 On Friday, the US dollar was on track to have its worst week against key rivals since the beginning of February. Global stocks have been falling this week as well due to risks to growth from aggressive monetary tightening – led by the Federal Reserve – and China’s strict lockdowns to quash an outbreak of Covid-19. The appeal of the dollar as a haven was eclipsed overnight by a decline in US yields as investors rushed for [..]

Daily Market Comment – Dollar steadies, stocks edge up as growth jitters subside slightly

Posted on May 20, 2022 at 9:35 am GMT

Some calm returns to markets, China rate cut helps Stocks bounce back but risk of more volatility from large options expiry today Dollar recovers but still headed for weekly losses, Swiss franc emboldened by SNB China rate cut soothes investor nerves Markets were a lot calmer on Friday after a bumpy week that put the US dollar on the backfoot and Wall Street’s rebound faltered. Big earnings misses from US retail giants sparked concern that the American economy may not [..]

Technical Analysis – USDJPY dives below 200-SMA; oversold signals eyed

Posted on May 19, 2022 at 3:14 pm GMT

USDJPY slid below the 200-period simple moving average (SMA) on the four-hour chart for the first time in two months, printing a new lower low at 127.00. That is marginally above the April 27 trough. Therefore, oversold signals are now attracting special attention as the price has closed below the lower Bollinger band. In momentum indicators, the RSI is looking for another rebound near its 30 oversold level, while the Stochastics are re-entering their oversold zone below 20, increasing the [..]

US Open Note – Recession fears keep jolting markets

Posted on May 19, 2022 at 1:24 pm GMT

Signs of recession pop up in earnings Sellers stormed into stock markets as giant US retailers Target and Walmart revealed a hit in margins on the back of rising labor and energy costs, with the former losing more than a third of its share value on Wednesday despite serving only local clients. The jittery earnings surprise follows Powell’s commitment to higher interest rates earlier this week, making investors think more seriously that the mix of inflation and monetary tightening could [..]

Daily Market Comment – Stocks crumble after dead-cat bounce but dollar unmoved

Posted on May 19, 2022 at 9:33 am GMT

S&P 500 plunges the most in two years as inflation reality for earnings sets in But follow-up panic in global equities today somewhat ‘contained’ FX and bond markets also calm as dollar steady US retail giants crash as inflation bites Sellers returned to Wall Street on Wednesday as a big drop in profits by America’s retail behemoths raised the spectre of diminishing margins, in what could only be the start of high inflation eating into corporate earnings. Target was the [..]

US Open Note – Stocks pare gains; European currencies slip too after nice rally

Posted on May 18, 2022 at 1:40 pm GMT

Recession not fully priced in Who will pay the price? That’s the question that bothers investors nowadays as businesses feel more confident to transfer rising production costs to consumers and central banks constantly message markets that additional rate increases are the immediate solution for spiraling inflation. Further monetary tightening is largely anticipated in the UK as inflation clocked in at a new 40-year high of 9.0% y/y as expected in April, while the Fed chief stated yesterday that rates could [..]

Daily Market Comment – Wall Street rallies despite Powell’s inflation resolve

Posted on May 18, 2022 at 9:33 am GMT

Rebound in equities gathers steam even as Powell pledges to keep raising rates Jump in UK inflation fails to sustain pound’s bounce back as dollar strengthens But sentiment still overall fragile as China and inflation worries persist US data shores up stocks as Powell gets tough An upbeat set of economic pointers in the United States boosted sentiment on Wall Street on Tuesday, suggesting that financial conditions have yet to substantially tighten following the start of the Fed’s normalization process. [..]

Technical Analysis – USDJPY struggles near 20-day SMA and marginally above 129.00

Posted on May 18, 2022 at 7:56 am GMT

USDJPY is heading sideways, back and forth of the 20-day simple moving average (SMA) slightly above the 129.00 round number. The weak momentum is mirroring in the technical indicators as well, as the RSI is pointing slightly lower in the positive region, while the MACD is moving lower below its trigger line. In the event the bulls take control again, the 20-year high of 131.35 will come first into view. A violation at this point may see another challenge battle [..]

US Open Note – Upbeat data drive risk-on mode ahead of Powell’s speech; Euro gears up on rate hike outlook

Posted on May 17, 2022 at 1:27 pm GMT

Pound is the best performer, but for how long? Markets were volatile ahead of the US open, with the European currencies switching to recovery mode after a period of heavy selling, and the US dollar index losing some steam as some rosy data releases shifted funds to riskier assets and hopes for China easing lockdown measures flourished. Upbeat employment and wage data out of the UK triggered the largest daily increase in the British pound in months. Strikingly, the number [..]

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