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
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
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
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • As UK vaccination rates have slowed, coupled with a backdrop of calmed UK Gilt yields, the British Pound’s relative appeal that carried it through the first three months of 2021 has been tarnished. Get your market update from @CVecchioFX here:https://t.co/7aZHtoa1vg https://t.co/YQYvJ17SMb
  • For most of 2021, the US 10Y yield remained in an ascending channel. In recent sessions, yields have cooled thanks to a dovish Fed. Also of note, markets appear to be signaling that US outperformance is now fully priced in. https://t.co/QD7ctvXB6T
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.40% Germany 30: 0.35% FTSE 100: 0.27% US 500: -0.01% Wall Street: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TQst43wrMf
  • GBP: Gradual chopping decline since Feb smacks of corrective behavior. Bull-flag coming into view that could soon trigger. Get your $GBP market update from @PaulRobinsonFX here:https://t.co/ndjE4K0Nmk https://t.co/8dxgUTYH7V
  • #Bitcoin lower by more than 2.5% as Turkey bans crypto payments, citing risks #BTC $BTCUSD https://t.co/KFj1mJjBpp
  • US #Dollar Near-term Technical Setups: $USDCAD, $AUDUSD, $GBPUSD - https://t.co/39M4d62z9A https://t.co/d8pDosSpoV
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.82% Silver: 0.65% Oil - US Crude: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KVfIXfvjtM
  • Gold breaks out of the range-bound price action from earlier this week as the 10-Year US Treasury yield slips to a fresh monthly low (1.53%). Get your $XAUUSD market update from @DavidJSong here:https://t.co/QlflNxQb8o https://t.co/cMYBlVaH5X
  • Bank of America sets bond sale at $15 billion, new record issuance for a bank - BBG $BAC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.51%, while traders in Germany 30 are at opposite extremes with 80.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Rt3UaXS0iz
USDJPY Bearish Amid Repatriation Flows, Return to Flash Crash Levels

USDJPY Bearish Amid Repatriation Flows, Return to Flash Crash Levels

Justin McQueen, Analyst

Check out the brand new Q1 FX forecast guides

USDJPY BEARISH BELOW 110.00-45

  • Risks: Equity Markets Continue to Rise, Global Data Picks up Notably

Dovish Fed, Limited Upside for Risk Markets to Spark Bid in Safe Haven JPY

Risks to the global economic outlook are deteriorating, which in turn has led to central banks altering their bias with regard to monetary policy, most notably the Federal Reserve provided a dovish pivot last week. As such, with the support from the Fed unwinding for the USD, risks are tilting to the downside.

The typically safe-haven JPY has weakened in light of a bounce back in equity markets. Despite the fact that this boost in equity markets has predominantly been based on a dovish Fed that has grown concerned over the economic outlook. Alongside this, the bid in equity markets has also come at time when market volumes have been somewhat lighter.

As such, further upside for risk markets (equities) may be somewhat limited going forward, which has also been signalled by the Baltic Dry Index (typically seen as a gauge for the world economy). Consequently, as fears over a global slowdown rise, pushing risk markets lower, the JPY may see safe-haven flows begin to support.

JPY Repatriation at Fiscal Year End

Elsewhere, seasonal factors may begin to support JPY, which tends to benefit from repatriation flows ahead of the Japanese fiscal year end. On average, over the past 5 years, USDJPY has dropped 3.76% in Q1, making it the worst performing quarter. Repatriation flows include profits from overseas units as well as dividend and interest income, meaning notable JPY buying. Given that USDJPY has typically moved over 3.7% in Q1, this could see USDJPY test the mid 105s.

USDJPY Technical Levels

Resistance 1: 110.00

Resistance 2: 110.15

Resistance 3: 111.25

Support 1: 109.27

Support 2: 108.50

Support 3: 107:90

USDJPY Bearish Amid Repatriation Flows, Return to Flash Crash Levels

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES