Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Yen Sinks, USD/JPY Nears 2019 Peak. AUD/USD Gains on More RBA Stimulus

Yen Sinks, USD/JPY Nears 2019 Peak. AUD/USD Gains on More RBA Stimulus

Daniel Dubrovsky, Contributing Senior Strategist


What's on this page

Japanese Yen, US Dollar, Australian Dollar, RBA – Asia Pacific Market Open

  • Japanese Yen losing ground to US Dollar on coronavirus uncertainty
  • U.S. unemployment claims surged at fastest speed since 2012 last week
  • AUD/USD received a boost from RBA government bond-buying plan

Thursday’s Wall Street Session – US Dollar Outpaces the Japanese Yen

The anti-risk Japanese Yen struggled to capitalize on a volatile day for global equities which swung between gains and losses. Wall Street was unable to rally at the extent European markets were, with the Dow Jones and S&P 500 closing 0.95% and 0.47% to the upside. Rather, It was the haven-linked US Dollar that outperformed as the world’s most-liquidity currency, sending USD/JPY aggressively higher.

Forex for Beginners
Forex for Beginners
Recommended by Daniel Dubrovsky
Forex for Beginners
Get My Guide

Over the past 24 hours, major central banks dialed up stimulatory measures in what has been a coordinated global move. The European Central Bank started a new quantitative easing program. The Reserve Bank of Australia cut rates and introduced yield curve control. The Bank of England also reduced benchmark lending rates and increased a bond purchasing program. These were emergency inter-meeting decisions.

Investors were digesting this new wave of stimulus as the VIX “fear gauge” eased off 2008 peaks. Meanwhile in the United States, the government is working on a potential fiscal package that could include tax rebates of $1,200 per individual and $2,400 for married couples. These are phased out for incomes exceeding certain thresholds. Meanwhile, unemployment claims soared last week at a velocity previously matched in 2012.

There was a bounce in crude oil prices as WTI rose almost 24 percent over the course of 24 hours. The Canadian Dollar - which can at times follow crude due to the commodity being a key source of local revenue – saw cautious gains and finished little changed against the US Dollar. The sentiment-linked Australian and New Zealand Dollars managed to draw out some gains.

Friday’s Asia Pacific Trading Session – RBA, Australian Dollar

AUD/USD received a boost after the Reserve Bank of Australia announced that it is offering to buy up to A$5 billion in government securities. These stimulatory measures may offer a boost to local stock markets as this week wraps up, perhaps boosting the Aussie. Follow-through is no guarantee in these uncertain times however.

S&P 500 futures are still pointing notably lower heading into Friday’s Asia Pacific trading session. That could spell a cautiously “risk-off” tilt in equities to come. Such conditions may extend gains in the US Dollar as it continues to outpace the Japanese Yen.

Japanese Yen Technical Analysis

On the 4-hour chart, USD/JPY has extended its uptrend from March 9 after taking out falling resistance from February. Two levels of rising support – “inner” and “outer” – on the chart below appear to be guiding the pair higher. USD/JPY is thus approaching peaks from 2019 and what has been this year’s high. That makes for a range of resistance between 111.92 and 112.30 that may put a pause on gains.

USD/JPY Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 17% -1% 5%
Weekly 12% -5% 0%
What does it mean for price action?
Get My Guide

USD/JPY 4-Hour Chart

USD/JPY 4-Hour Chart

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

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.