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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • #Gold Price Forecast: $XAUUSD Pre-Election Breakdown to Monthly Lows - https://t.co/qfEko0woN7 https://t.co/vvWdrxOQMP
  • ECB sources - policymakers favoured more bond purchases, others TLTRO and others a mix of both $EUR
  • The Nasdaq 100 has now been selling off for more than two weeks, and the US Election is on the calendar for next Tuesday. Will the #Nasdaq 100 be higher or lower on Wednesday morning?
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.21%, while traders in NZD/USD are at opposite extremes with 68.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/NTyhmJYHYm
  • $Gold - right back down to the deeper support zone 1859-1873 Will bulls come in to hold support for the higher-low? https://t.co/k4ndphNSf9 https://t.co/BBSwxrkKXi
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: -0.09% Gold: -0.42% Oil - US Crude: -4.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lwARKXb2XM
  • Hey traders! Get your Thursday Market Update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/wZeeu1mF39
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.22% 🇯🇵JPY: -0.29% 🇦🇺AUD: -0.43% 🇬🇧GBP: -0.60% 🇨🇭CHF: -0.63% 🇪🇺EUR: -0.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rEtMlv24JY
  • Trump says he wants a bigger aid package than Pelosi's - BBG
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.55% US 500: 0.53% FTSE 100: 0.40% France 40: 0.28% Wall Street: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/6xRjE6wqok
Yen May Rise After US ISM Data Hit 2009 Low. USD/JPY Downtrend Eyed

Yen May Rise After US ISM Data Hit 2009 Low. USD/JPY Downtrend Eyed

2019-10-01 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • US ISM Manufacturing PMI 10-year low triggers risk aversion
  • Japanese Yen rose, USD fell. GBP saw volatility on Brexit news
  • USD/JPY downtrend may speed up on bearish contrarian signals

Find out what the #1 mistake that traders make is and how you can fix it!

Yen Soars as US ISM Manufacturing PMI Triggers Risk Aversion

The anti-risk Japanese Yen rose on Tuesday after September’s US ISM Manufacturing PMI data triggered aggressive risk aversion. The 47.8 outcome (versus 50.0 expected and from 49.1 prior) was the softest in over 10 years, showing a second consecutive month of contraction. The survey of the US manufacturing sector revealed that the US-China trade war was a primary factor in fading activity.

The typical impact of dismal US economic data was on the menu for financial markets, especially with risk trends vulnerable in a state of slowing global growth. The S&P 500 dipped, ending the day 1.23 percent to the downside as demand for safer US Treasuries soared. Tumbling local bond yields, reflecting a dovish shift in Fed monetary policy expectations, weighed against the US Dollar.

The sentiment-linked Australian and New Zealand Dollars underperformed, though most of their losses occurred earlier in the session. This was especially true for the Australian Dollar which was battered in the aftermath of the RBA cutting benchmark interest rates for a third time this year. Meanwhile, anti-fiat gold prices outperformed as the precious metal recovered some of its recent losses.

It was also a volatile session for the British Pound, which was jawboned by Brexit-related headlines. On Tuesday, reports crossed that wires that the European Union was ready to consider a time limit on the Irish backstop – a key sticking point in ongoing negotiations ahead of the October 31 withdrawal deadline. UK Prime Minister Boris Johnson is expected to make a “final” offer on Brexit to the EU later today.

Wednesday’s Asia Pacific Trading Session

A light economic data offering during Wednesday’s Asia Pacific trading session places the focus for currencies on risk trends. As such, we may see the Nikkei 225 follow Wall Street lower as regional markets digest disappointing data from the United States. As such, we may see the anti-risk Japanese Yen accelerate its upside progress. This would come at the expense of the pro-risk AUD and NZD.

Japanese Yen Technical Analysis

Resistance was recently reinforced in USD/JPY at 108.48, the September high. This price level is also just above the descending trend line from May – blue line on the chart below. A bearish outlook from IG Client Sentiment could pave the way for a retest of support which is the key range between 106.78 and 107.21. This would be in line with the dominant downtrend.

Join me on Wednesdays at 00:00 GMT as I discuss using IG Client Sentiment as a Third Form of Analysis in Financial Markets

USD/JPY Daily Chart

Yen May Rise After US ISM Data Hit 2009 Low. USD/JPY Downtrend Eyed

Chart 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