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.

Free Trading Guides
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
Bearish
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
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
USD/JPY
Mixed
More View more
Real Time News
  • The US Dollar appears to be back on the offensive against ASEAN FX such as the Singapore Dollar and Malaysian Ringgit. The Philippine Peso gained. What does USD face from here? Find out from @ddubrovskyFX here: https://t.co/U8VGdJPIST https://t.co/67Qq4n8Tet
  • LIVE NOW: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395
  • Heads Up! Will be starting soon. I will be resuming last week's discussion on equities to see what positioning can say about the prevailing trends, signup below https://t.co/5WGeehCLdh
  • 🇯🇵 JPY Trade Balance - BOP Basis (Yen) (FEB), Actual: ¥1366.6b Expected: ¥1215.0b Previous: -¥985.1b https://www.dailyfx.com/economic-calendar#2020-04-07
  • 🇯🇵 JPY Machine Orders (YoY) (FEB), Actual: -2.4% Expected: -3.0% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-04-07
  • 🇯🇵 JPY Machine Orders (YoY) (FEB), Actual: 5% Expected: -3.0% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-04-07
  • Australia outlook cut from stable to negative by S&P - BBG #AUD
  • #RBNZ Assistant Governor Christian Hawkesby: - The central bank is "very open" to changing the size of its QE program - There is a limit to how much of the bond market the RBNZ can purchase - Monetary authorities open to increasing QE in a "rapidly evolving situation" - BBG #NZD
  • Heads Up:🇯🇵 JPY Machine Orders (YoY) (FEB) due at 23:50 GMT (15min), Actual: N/A Expected: -3.0% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-04-07
  • Heads Up:🇯🇵 JPY Trade Balance - BOP Basis (Yen) (FEB) due at 23:50 GMT (15min), Actual: N/A Expected: ¥1213.6b Previous: -¥985.1b https://www.dailyfx.com/economic-calendar#2020-04-07
Japanese Yen, Dow Jones Forecast Turn to Trump Fiscal Stimulus Hype

Japanese Yen, Dow Jones Forecast Turn to Trump Fiscal Stimulus Hype

2020-03-09 23:30:00
Daniel Dubrovsky, Analyst
Share:

Japanese Yen, Dow Jones, S&P 500, U.S. Fiscal Stimulus, Coronavirus – Asia Pacific Market Open

  • Japanese Yen falls, Dow Jones futures rise as Trump announces fiscal measures
  • Market follow-through is uncertain for time being, NZD/USD faces Orr speech
  • Majors-based JPY index struggled confirming a key resistance break for now

BREAKING: U.S. President Donald Trump Announces Possible Fiscal Stimulus

The anti-risk Japanese Yen may see near-term losses after the worst day on Wall Street since 2008. Equities are fast approaching bear market territory amid coronavirus epidemic woes. As a result, U.S. President Donald Trump announced possible fiscal stimulus measures. The JPY cautiously fell, sending USD/JPY higher, with an uptick in S&P 500 futures. This sent the latter to reverse losses of about -1.5% prior to the announcement.

Top Trading Lessons
Top Trading Lessons
Recommended by Daniel Dubrovsky
Top Trading Lessons
Get My Guide

According to Trump, officials will be looking to discuss a possible payroll tax cut with Congress along with relief for hourly wage earners. The President is scheduled to hold a news conference on Tuesday where he said that he will reveal “very dramatic” measures to help support the economy. This marks a u-turn after the end of last week where Mr Trump cast doubt on immediate measures, speaking to the urgency of the situation.

At Wall Street open Monday, heavy losses resulted in circuit breakers temporarily suspending trade for 15 minutes. By the end, the Dow Jones and S&P 500 closed -7.79% and -7.60% to the downside. Further complicating matters was a -27.31% plunge in crude oil prices and CAD weakness – as expected. That was the worst day since 1991 after Saudi Arabia initiated a price war following a collapse in OPEC+ output reduction talks.

Tuesday’s Asia Pacific Trading Session

Prospects of fiscal stimulus from the world’s largest economy may help alleviate some of investors' worries in the near term. This is of particular importance due to the limitations of monetary policy easing efforts from developed nations in the aftermath of the 2008 financial crisis. An emergency 50-bp rate cut from the Federal Reserve was unable to quell the selloff on Wall Street last week.

Follow-through in markets is uncertain and ought to be treated with a grain of salt until further details of these measures and their implementation is known. Meanwhile cases of the coronavirus are likely to grow. For now, the Canadian Dollar is gaining alongside sentiment-linked crude oil prices. The “pro-risk” Australian Dollar and similarly-behaving New Zealand Dollar are higher.

NZD/USD will also be closely watching incoming commentary from RBNZ Governor Adrian Orr. Due at 1:00 GMT, he will be speaking about the use of non-standard monetary policy tools. Yesterday, local Finance Minister Grant Robertson hinted that unconventional measures from the RBNZ are “not on the cards”. So, today’s speech by Orr may reveal other policies that underscore dovish expectations. That may sink NZD.

Starts in:
Live now:
Apr 15
( 00:04 GMT )
Recommended by Daniel Dubrovsky
What Do Other Traders Buy/Sell Bets Say About Price Trends?
Register for webinar
Join now
Webinar has ended

Japanese Yen Technical Analysis

The Japanese Yen generally had its best performance since the 2016 Brexit Referendum. On the chart below is a majors-based JPY index, averaging it versus USD, AUD, GBP and EUR. Prices were unable to confirm a daily close above 2019 peaks, leaving behind a large upper shadow that stopped short on the 2016 high. A daily close above the former may pave the way for further upside progress. Otherwise, a turn lower places the focus on immediate rising support from February.

USD/JPY MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -5% 13% 3%
Weekly 43% 0% 19%
What does it mean for price action?
Get My Guide

Majors-Based Japanese Yen Index Daily Chart

Japanese Yen, Dow Jones Forecast Turn to Trump Fiscal Stimulus Hype

Chart Created Using TradingView

--- 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

News & Analysis at your fingertips.