News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Gold is facing the neckline of a Double Bottom Pattern after bouncing off a confirmed longer-term trendline. Is a bullish reversal in order? Get your market update from @FxWestwater here: https://t.co/kLXZewWBMd https://t.co/w1Nu0z569m
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/Gn41XsGktg
  • Rollover is the interest paid or earned for holding a currency spot position overnight. Learn how to earn rollover interest on your open positions here: https://t.co/SRsG8CxjEn https://t.co/2AR1qgx0tz
  • The New Zealand Dollar is in a tricky spot. On one hand, rising stocks can propel NZD. On the other, a dovish RBNZ ahead could cool bond yields as the government tackles soaring housing costs. Get your market update from @ddubrovskyFX here: https://t.co/5rjm2gr3EL https://t.co/aLwhWHMPqz
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/obH0RFLKhC
  • It was a big Q1 for $USDJPY but so far Q2 has been a far different tone. Which side will prevail? Get your market update from @JStanleyFX here: https://t.co/TxlD3zoglZ https://t.co/rUQnokAx30
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/ycjWjCETQJ
  • The RBA highlighting several key risks to the local economy in its semi-annual FSR may drive AUD lower against haven-associated currencies despite the expectation of strong Q1 GDP figures out of China. Get your market update from @DanielGMoss here: https://t.co/kLZ8DQxH3z https://t.co/KubqA24TLH
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/36Sy4DOnFD
  • Though the $SPX hit a record high through Friday, there was little momentum and far less correlation across various risk assets. Can we find more serious traction - or a reversal - amid earnings, inflation-Fed forecasting, US-China trade negotiations? https://www.dailyfx.com/forex/video/daily_news_report/2021/04/10/SP-500-Outlook-Carries-Risk-Trends-Dollar-Event-Heavy-on-USDJPY-USDCNH.html https://t.co/AVTM9QvEGQ
USD/JPY Outlook Bearish on Yen Chart Breakout, Trade Wars

USD/JPY Outlook Bearish on Yen Chart Breakout, Trade Wars

Daniel Dubrovsky, Strategist

US Dollar, Japanese Yen, USD/JPY - Talking Points

  • US-China trade deal uncertainty may boost Japanese Yen
  • USD/JPY may top after break under bearish chart pattern
  • Majors-based Yen index has room to climb to trend line

Build confidence in your own USD/JPY strategy with the help of our free guide!

Japanese Yen Fundamentals

The anti-risk Japanese Yen spent most of its time this week making progress against the US Dollar. On the whole, its drive has been fueled by uncertainties regarding hopes of a US-China trade deal. As a result, the MSCI Emerging Markets Index has shed about 3.3 percent of its value since topping earlier this month. This is as the Greenback stalled with bond yields on testimony from Fed Chair Jerome Powell.

Mr Powell reiterated that where they are with monetary policy “is appropriate” despite what appears to be a “favorable” outlook. With that in mind, the primary focus for the Yen from here will likely remain on trade wars. Over the past 12 hours, we have seen White House Economic Advisor Larry Kudlow boost hopes of a trade deal. But, Donald Trump’s reluctance to commit to lowering Chinese tariffs could revive risk aversion.

Follow me on twitter @ddubrovskyFX for updates on USD/JPY’s performance

Japanese Yen Technical and Sentiment Outlook

On a daily chart, USD/JPY has closed under a Rising Wedge chart pattern in the aftermath of an Evening Star candlestick formation. These are bearish price signals that could imply a reversal of the dominant uptrend since August. Confirmation is key with technical analysis. If prices manage to find upside momentum, pushing back into the chart pattern could overturn it. Uptrend resumption would entail a daily close above 109.32.

I would like to see prices breach the November 1 low at 107.89 for further bearish confirmation. This might be the case given that trader positioning is favoring the upside. According to the IG Client Sentiment Report from November 14, traders are further net-long USD/JPY than yesterday and last week.The combination of current sentiment and recent changes gives us a stronger bearish contrarian trading bias.

Join me on Wednesdays at 01:00 GMT as I cover what IG Client Sentiment is saying about the prevailing trends in financial markets!

USD/JPY Daily Chart

USD/JPY Outlook Bearish on Yen Chart Breakout, Trade Wars

USD/JPY Chart Created Using TradingView

Using a majors-based Japanese Yen index - an average of its performance against USD, EUR, GBP and AUD - prices are on the rise after finding a bottom at June and July lows. This followed positive RSI divergence, signaling fading downside momentum. At times, this can precede a turn higher. As such, there may be some room for Yen to climb as it approaches a potential descending trend line from the beginning of September.

Majors-Based Japanese Yen Index

USD/JPY Outlook Bearish on Yen Chart Breakout, Trade Wars

Majors-Based Japanese Yen Index Created Using TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES