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
Bearish
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
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/6wxX6oQurn
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • 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/QszmdZX8cS https://t.co/qdrsi61CN8
Why the Best USD/JPY Trade Is No Trade at All

Why the Best USD/JPY Trade Is No Trade at All

Kathy Lien, Technical Strategist

Even though fundamentals support further upside in USDJPY, strong resistance nearby makes the sidelines look quite appealing. In the meantime, however, GBPUSD may target the June high above 1.57.

The Japanese yen (JPY) traded lower against all major currencies except the euro (EUR) and Swiss franc (CHF) on Tuesday. The decline in US Treasury yields contributed to the weakness in USDJPY, but softer Japanese data also pushed the Nikkei down 2.63%, adding pressure to the yen crosses.

Nationwide department store sales dropped 2.5% year-over-year for the month of July, and softer spending was also seen at convenience stores in Japan and department stores in Tokyo. The decline in demand is not alarming, however, because part of it is a payback after last month's sharp rise.

The all-industry activity index also declined -0.6% in June after rising 1.2% the previous month. While the volume of trades in the Nikkei has been low, the fact that the yen has refused to decline despite a widening gap between US and Japanese interest rates is weighing heavily on sentiment in Japan.

It has been a challenge to remain bullish USDJPY, but fundamentals continue to support a rally. At this stage, it may be better to wait for some upside momentum before executing a trade, however, as there is quite a bit of resistance between 98 and 99 in USDJPY.

The Key UK Economic Data for Thursday

The British pound (GBP) hit a two-month high against the US dollar (USD) and snapped a nine-day losing streak to end Tuesday higher against the euro. No UK economic reports were released, but recent upside surprises in UK data continue to lend support to the currency.

The markets are pricing in an earlier rate hike by the Bank of England (BoE) monetary policy committee, which means they expect the central bank to reach its unemployment-rate target sooner. Before last week's data surprises, investors expected the first rate hike to occur at the end of 2016, but now tightening could happen as early as February 2015. While this is still a long time from now, the dramatic shift in expectations is part of the reason why sterling has performed so well this month.

Wednesday's public sector finances report isn't expected to pose a threat to monetary policy expectations. Public sector net borrowing is actually expected to decline in the month of July thanks to stronger growth and spending cuts. This would represent an improvement in Britain's budget.

The number we are more interested in, however, is the factory orders index from the Confederation of British Industry. We believe that this data has a good correlation with the more-closely-followed manufacturing PMI report because it measures the same sector. Economists are looking for an improvement, and if the increase is large enough, it could drive the GBPUSD to its June high of 1.5750.

By Kathy Lien of BK Asset Management

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

DISCLOSURES