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
Oil - US Crude
Bearish
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.28% 🇦🇺AUD: 1.17% 🇬🇧GBP: 1.01% 🇪🇺EUR: 0.57% 🇨🇭CHF: 0.35% 🇯🇵JPY: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eMQxa6E4eU
  • Coming up at half past the hour: my weekly webinar on market #sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?ref-author=essex&CHID=9&QPID=917711
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 1.67% Wall Street: 0.90% Germany 30: 0.89% US 500: 0.65% FTSE 100: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/5LHY5FmIF9
  • Missed today's #AUDUSD weekly outlook webinar? See the recording here - https://t.co/I6VTWPtUwc
  • Canadian Dollar Forecast: USD/CAD Price- Ready to Edge Lower? More details in the link: https://www.dailyfx.com/forex/technical/home/analysis/usd-cad/2020/05/26/Canadian-Dollar-Forecast-USDCAD-Price-Ready-to-Edge-Lower-MK.html?CHID=9&QPID=917714 https://t.co/eTYFyolGbV
  • Vaccine hopes, a Franco-German recovery package proposal, and a Fed that is committed to provide further liquidity has taken some of the shine off the safe-haven US Dollar.Get your market update from @JMcQueenFX here:https://t.co/GeN07sifc0 https://t.co/r8RTJC8bBG
  • Join @MartinSEssex 's #webinar at 6:30 AM ET/10:30 AM GMT to learn more about trading #sentiment Register here: https://t.co/XUUPRdY06p https://t.co/3XSyQQShxq
  • Silver has been beaten handily by gold in the rush to haven assets inspired by the contagion. However, the gold/silver ratio was rising steadily before this crisis and will probably continue to do so. Get your #silver market update from @DavidCottleFX here:https://t.co/00DiZn6XZS https://t.co/rpZihwpSS1
  • Gold Prices Echo US Dollar Drop as Market Mood Improves - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2020/05/26/Gold-Prices-Echo-US-Dollar-Drop-as-Market-Mood-Improves.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #gold #xauusd #CrudeOil #OOTT
  • EU ready to drop maximalist approach to fisheries negotiations with the UK in the next round of Brexit talks (June 1st-5th), according to sources
USD/JPY Breakout May Extend, Nasdaq Composite Outpaces Dow Jones

USD/JPY Breakout May Extend, Nasdaq Composite Outpaces Dow Jones

2020-05-11 23:00:00
Daniel Dubrovsky, Analyst
Share:

US Dollar, Japanese Yen, USD/JPY – Asia Pacific Market Open

  • US Dollar gains in mixed session for global stocks, Yen weakens
  • Tech stocks diverged with industrial shares, AUD and NZD fell
  • USD/JPY may extend rally after break above bullish chart pattern

US Dollar Gains as Japanese Yen Sinks in Mixed Day for Global Equities

The haven-linked US Dollar had a rosy session to start off this week as sentiment struggled in directionless trade. It began on an upbeat during the Asia Pacific trading session as the People’s Bank of China (PBOC) hinted at further monetary stimulus. This also sapped the appeal of the anti-risk Japanese Yen. However, the European session struggled to find follow-through as the Euro Stoxx 50 closed -0.84%.

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

There was a resurgence in risk appetite during the North American session, but that was only enough to bring the S&P 500 to a flat day. Most of the gains in equities were derived from health care and information technology stocks as financial and energy shares weighed on indexes. There was a notable disparity between the tech-heavy Nasdaq Composite (+0.78%) and with the Dow Jones Industrial Average (-0.45%).

To that end, investors may be parking their capital into sectors that could be perceived to fare better off in a work-from-home environment. The sentiment-linked Australian and New Zealand Dollars underperformed, struggling to capitalize on the late-day recovery in risk appetite. The liquidity advantage of the Greenback relative to the Yen may have been part of why USD/JPY soared over the past 24 hours in relation with equities.

Tuesday’s Asia Pacific Trading Session

Asia Pacific equities may be heading for a mixed start to the day. Chinese inflation data is up but that may not yield a significant reaction from markets if the PBOC is aiming for more stimulus already. Thus a higher-than-expected print may not inspire much lasting follow-through for the Australian Dollar. The AUD is generally the market’s often-favored liquid China proxy. As such, it could focus on broad sentiment instead.

Develop the discipline and objectivity you need to improve your approach to trading consistently

Japanese Yen Technical Analysis

USD/JPY may be on the verge of extending gains after prices broke above a Falling Wedge over the past 24 hours. This is a bullish chart pattern outlined on the 4-hour chart below. The push through descending resistance appears to have been confirmed as prices attempt to rise towards the next technical barrier around 108.08. Positive RSI divergence also preceded the turn higher, a sign of fading downside momentum.

USD/JPY BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% 6% 4%
Weekly -10% 15% 0%
What does it mean for price action?
Get My Guide

USD/JPY – 4-Hour Chart

USD/JPY Breakout May Extend, Nasdaq Composite Outpaces Dow Jones

Chart Created in 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.