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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
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
Wall Street
Mixed
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
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Gold is jumping again today and briefly tested its 200-day simple moving average before turning lower Despite the quick retracement, the gold price chart is starting to look encouraging https://t.co/Dvd4H9vQEs
  • Levels for Yields on the $US10Y post-#NFP . . . Watch the close today. . https://t.co/ZFZnLXiH5f
  • And now people are wondering why said group of workers is no longer willing to accept low wages? This is a major psychological shift on a society-wide level.
  • After decades of calling certain workers "low skill," we then have a dramatic turn of pace with calling them "essential" during the pandemic, seeing as how society would have literally collapsed without them....
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.00% FTSE 100: 0.46% France 40: 0.20% US 500: 0.20% Wall Street: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/y6AovkZ4X1
  • re: talk that April US NFP reflects workers unwilling to take COVID risk at current wages Is it really a surprise?
  • from the talking points in this article on Wednesday. Illustrated this morning with #NFP and $SPX, $NDX https://t.co/cZLAoRbPvi https://t.co/el8fsm9i15
  • Heads Up:🇷🇺 Foreign Exchange Reserves (APR) due at 13:00 GMT (15min) Previous: $573.3B https://www.dailyfx.com/economic-calendar#2021-05-07
  • $EURUSD rips right back up to fibo resistance zone after the falling wedge reversal https://t.co/Z5TlCSvHtB https://t.co/SFX4kaPYHw
  • Watch your live NFP coverage with @CVecchioFX here:https://t.co/8W0SxoTWhz
Japanese Yen May Fall Post Abe Resignation, AUD/USD Eyeing RBA

Japanese Yen May Fall Post Abe Resignation, AUD/USD Eyeing RBA

Daniel Dubrovsky, Strategist

Japanese Yen, S&P 500, US Dollar, Australian Dollar, RBA – Asia Pacific Market Open

  • Japanese Yen fell, markets may have bet on Abenomics continuation
  • US Dollar declined despite broad weakness in global stock markets
  • Australian Dollar eyeing RBA, JPY could be at risk to further losses

The anti-risk Japanese Yen was the worst-performing major currency over the past 24 hours. This is despite weakness in most stock sectors during the Wall Street trading session. The Dow Jones Industrial Average and S&P 500 closed -0.78% and -0.22% on Monday while the tech-heavy Nasdaq 100 managed to clock in a 0.68% increase.

Weakness in the Yen may have followed on from the end of last week when Japanese Prime Minister Shinzo Abe resigned for health reasons. The markets may be betting on Abe’s successor continuing his ‘Abenomics’ stimulus plan. The Nikkei 225 outperformed its APAC peers on Monday.

Despite losses in the majority of stocks on Monday, the haven-linked US Dollar also aimed slightly lower. The Greenback was falling alongside longer-dated Treasury yields. Fed Vice Chair Richard Clarida noted earlier that ‘there potentially is a place for yield-curve control’. Falling returns on government bonds may have contributed to the lackluster performance in USD.

Tuesday’s Asia Pacific Trading Session

With that in mind, the focus for the anti-risk Yen could start to shift back to the dynamics in market sentiment. A disappointing session for APAC equities ahead could help alleviate recent selling pressure in JPY and USD. Conversely, the growth-linked Australian and New Zealand Dollars could stand to depreciate.

AUD/USD will also be eyeing the Reserve Bank of Australia (RBA) rate decision. Economists are expecting the cash rate and 3-year yield target to remain unchanged at 0.25%. What could raise volatility risk in the Australian Dollar are concerns policymakers have about the economic impact of lockdowns in the state of Victoria.

Japanese Yen Technical Analysis

The Japanese Yen could be at risk to extending losses. On the daily chart below, my majors-based Yen index just broke under a bearish Descending Triangle chart patternas expected. A confirmatory downside close could spark further selling pressure as the Yen looks to test its average cheapest price since December 2019.

Majors-Based Yen Index – Daily Chart

Japanese Yen May Fall Post Abe Resignation, AUD/USD Eyeing RBA

Chart Created in TradingView

*Majors-Based Japanese Yen Index Averages JPY Against USD, AUD, GBP and EUR

--- 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