All Articles Tagged - USDJPY

Daily Market Comment – Dollar whipsaws after not-so-soft inflation data, stocks sink again

Posted on May 12, 2022 at 9:20 am GMT

Dollar on the front foot again after US inflation falls by less than expected Equity markets back in a sea of red as recession risks rise Pound slips to new lows after UK GDP contracts, hawkish ECB can’t save the euro Dollar bolstered as inflation becoming more sticky The US dollar climbed to fresh 20-year highs on Thursday as investors ramped up their bets that the Federal Reserve will have to get even more aggressive to bring down burgeoning inflation [..]

US Open Note – US CPI beats expectations and rises by 8.3%; dollar moves up again

Posted on May 11, 2022 at 1:36 pm GMT

The CPI rate ticked up by 8.3% in the year that ended in April. The annual CPI decrease was the first since August, but it was the eighth month in a row of gains of more than 6%. In March, the Consumer Price Index (CPI) rose 8.5% year-over-year, the highest increase since December 1981. After the release of higher-than-expected CPI figures, the dollar initially rose. The dollar index is showing positive signs as it jumped beyond 104.00; however, US futures are leading lower, suggesting a [..]

Technical Analysis – USDJPY ascent persists around 20-year highs

Posted on May 11, 2022 at 9:12 am GMT

USDJPY continues to defy gravity with its recent two-and-a-half-month rally from 114.40, showing limited signs of slowing down. Reinforcing this viewpoint are the soaring simple moving averages (SMAs). The Ichimoku lines are indicating that positive forces remain active, while the short-term oscillators are reflecting the latest impulses of downward pressures. The MACD is revealing some easing in positive momentum from the beginning of May, while the RSI is gliding lower in the bullish region. Moreover, the stochastic oscillator has regained [..]

US Open Note – Dollar steadies as it awaits US CPI data

Posted on May 10, 2022 at 12:50 pm GMT

Fed speakers today and US CPI tomorrow in focus This week, Fed speakers will be out in full force to disseminate the latest views of the central bank. Each one of these officials has a chance to share their thoughts on current policy. Barkin did this last week and put 75 bp back on the table, stressing that he wants to raise rates “as quickly as possible.” Others at the Fed are also likely to adopt a more hawkish outlook in the coming days. But the main thing to [..]

US inflation: has it peaked? – Forex News Preview

Posted on May 9, 2022 at 3:45 pm GMT

The consumer price index for April is due out of the United States on Wednesday (12:30 GMT) and the latest report could be the most crucial one yet as it could show that inflation has peaked, or at the very least that it is slowing. The Federal Reserve just hiked interest rates by 50 basis points and is likely to raise them again by a similar amount at the next meetings. This has propelled the US dollar to 20-year highs [..]

US Open Note – Stocks remain heavy, failing to form foothold after Fed vibe

Posted on May 9, 2022 at 1:38 pm GMT

Rising US yields feed dollar resilience as FOMC meeting in rear-view mirror In the previous week, we had the US central bank chief, Jerome Powell reiterate that the Federal Reserve will in June begin to reduce the close to $9 trillion hoard of assets gathered throughout the pandemic period, in an attempt to help bring inflation to the desired levels. While the Fed delivered a 50-basis points hike, raising the benchmark overnight rate to 1.00% last Wednesday, markets are still [..]

Technical Analysis – USDJPY continues its strong bullish phase, hits new 20-year high

Posted on May 9, 2022 at 9:15 am GMT

USDJPY has climbed to a new 20-year high today, reaching the 131.34 level. In the short-term, the market could retain the bounce off the 128.60 support as the MACD remains above its zero and trigger lines, while the RSI is approaching the overbought region in the 4-hour chart. Should the pair stretch north, and the pair completes the session above the 131.25 level, then the next target could be at the 135.20 resistance, taken from the high in January 2002. On the flip side, the 130.16 [..]

Daily Market Comment – King dollar reigns supreme as stocks keep sliding

Posted on May 9, 2022 at 9:01 am GMT

No stopping the mighty dollar, rising US yields provide fuel Stocks struggle for altitude amid Fed and China worries All eyes on US CPI data this week – peak inflation at last? Dollar power There’s no stopping the mighty US dollar, which continues to slice its way through the currency complex. Stress in equity markets, worries about a synchronized global economic slowdown, and the relentless grind higher in US yields continue to drive up demand for the reserve currency. Once [..]

Week Ahead – US inflation might peak, will the dollar follow?

Posted on May 6, 2022 at 1:07 pm GMT

The Fed signaled that it will avoid shock-and-awe rate increases, putting more emphasis on avoiding a recession rather than vanquishing inflation. Another round of US inflation data is on tap next week and the Fed might finally get some good news, as the yearly CPI rate may have peaked. Is this the beginning of the end for the dollar’s supremacy? Maybe not. Inflation crest The message from the Federal Reserve this week was much softer than feared. Chairman Powell shut [..]

Technical Analysis – USDJPY on the rise again, but bearish risks still intact

Posted on May 6, 2022 at 12:12 pm GMT

USDJPY has recovered Wednesday’s pullback and is heading for its ninth consecutive weekly gain after stepping on the red Tenkan-sen line and the one-month-old supportive trendline at 129.15. The bullish action, however, does not look credible yet as the RSI has stretched its negative trajectory below its 70 overbought mark and the MACD has further weakened below its red signal line. Moreover, the pair has not successfully breached its weekly resistance of 130.20 yet, making any trendline breakout beneath 129.00 still [..]

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