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
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Gold & silver prices update: the US Dollar advanced 0.18% following the debate, sending gold and silver prices down by 0.38% and 1.2% respectively. https://t.co/YGFcqpouEJ
  • The US Dollar soared against emerging market and ASEAN currencies as capital fled developing economies in a sign of rising concern about the global growth outlook. Will this continue? Find out from @ddubrovskyFX here:https://t.co/mAyo9IAjNM https://t.co/MVKDnjsRv6
  • Wall Street Futures Update: Dow Jones (-0.16%) S&P 500 (-0.12%) Nasdaq 100 (-0.04%) [delayed] -BBG
  • What a debate ... Anyways If you missed this week's session on IGCS where I discussed how recent changes in retail positioning can impact $EURUSD $AUDUSD #SP500 #DowJones and $GBPUSD, check out the recording on YouTube here - https://t.co/f4gmCClf35
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.11% Oil - US Crude: -0.26% Silver: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3CdZK9Gfb2
  • China official manufacturing PMI came in at 51.5 - a six month high. The Caixin manufacturing PMI fell slightly to 53.0 from 53.1. The Hang Seng Index moved 1.6% higher in early Asia hours. https://t.co/YgQER71pDX
  • The DAX 30 rallied to resistance near the 12,935 marks before stalling. Get your #DAX market update from @PeterHanksFX here: https://t.co/VSFoWXJwoU https://t.co/Bhk0Zk4yxp
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.23% 🇦🇺AUD: 0.07% 🇨🇦CAD: 0.05% 🇬🇧GBP: 0.02% 🇨🇭CHF: -0.04% 🇯🇵JPY: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/SpFg3KB45Z
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.21%, while traders in EUR/USD are at opposite extremes with 61.70%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ZukAdngSge
  • The New Zealand Dollar’s correction lower against the Japanese Yen and US Dollar may be at an end, as NZD remains constructively perched above key chart support. Get your $NZD market update from @DanielGMoss here:https://t.co/8GiKFTfrMP https://t.co/O6PLR4NFJt
USD/JPY May Reverse as AUD/USD Follows Post US-China Trade Talks

USD/JPY May Reverse as AUD/USD Follows Post US-China Trade Talks

2019-10-13 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • Markets seemed underwhelmed by phase 1 of US-China talks
  • Asia Pacific markets may retrace recent gains as AUD falls
  • USD/JPY could turn lower given fading upside momentum

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

Markets Somewhat Disappointed in US-China Trade Talks

The conclusion of US-China trade talks on Friday left the markets somewhat disappointed as the S&P 500 trimmed upside progress. In particular, the MSCI Emerging Markets Index closed near its upside gap. Something to keep in mind of heading into these discussion was that markets spent the past 48 hours rallying in anticipation. Thus, investors needed further upside surprise to fuel their risk appetite.

In short, there was a partial deal reached between the two economic powerhouses, but a full one will have to wait. This does mean that the US will withhold from raising tariffs against China this week by 5 percent. Friday’s negotiations were part 1 of 3 phases where Presidents Donald Trump and Xi Jinping could sign a deal at the APEC meeting in Chile during the middle of November.

This does mean that until then, sentiment will be left vulnerable to stray headlines regarding trade updates. This uncertainty may have been what cooled the rally in the sentiment-linked Australian and New Zealand Dollars as the anti-risk Japanese Yen gained. The British Pound meanwhile was the best-performing major as the latest headlines continued fueling hopes of a Brexit deal this month.

Monday’s Asia Pacific Trading Session

With that in mind, this could perhaps result in a bittersweet mood in financial markets at the start of the new week as major benchmark stock indexes retrace some of their upside progress. That may in-turn offer a boost to the anti-risk Japanese Yen at the expense of the AUD and NZD. Also, at an unspecified time later today, China’s trade data for September will cross the wires.

Japanese Yen Technical Analysis

The Japanese Yen might have lost ground to the US Dollar, but USD/JPY once again struggled to breach key horizontal resistance at 108.48. The pair continues to show hesitation to commit to an upside break above the critical descending trend line from May. This is as negative RSI divergence shows fading upside momentum. This can at times precede a turn lower, opening the door to a retest of 107.21 – 106.78.

Want to learn more about where the Japanese Yen may go? Check out our USD/JPY Q4 forecast!

USD/JPY Daily Chart

USD/JPY May Reverse as AUD/USD Follows Post US-China Trade Talks

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