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
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
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
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • 🇺🇸 USD U. of Mich. Sentiment (NOV F), Actual: 96.8 Expected: 95.7 Previous: 95.7 https://www.dailyfx.com/economic-calendar#2019-11-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.68%, while traders in France 40 are at opposite extremes with 80.07%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/18Gcj2mgVl
  • German Finance Minister Scholz says no expectations for EU deficit rules to change $EUR
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 0.14% Silver: -0.04% Oil - US Crude: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/coQYpif2bb
  • $USD https://t.co/DkP4VUiBVK
  • RT @Reuters: China's Xi says he wants to work out initial trade deal with U.S. https://t.co/jNihU0lJOH https://t.co/a7zmxAGKOk
  • 🇺🇸 USD Markit US Composite PMI (NOV P), Actual: 51.9 Expected: N/A Previous: 50.9 https://www.dailyfx.com/economic-calendar#2019-11-22
  • Any pull-back in $EURGBP will initially target Monday’s multi-month low at 0.85220 ahead of May’s low at 0.84907 and the late-March low print at 0.84725. Get your market update from @nickcawley1 here: https://t.co/eVFzZ5rzHU https://t.co/BxPRFSn5wl
  • 🇺🇸 USD Markit US Manufacturing PMI (NOV P), Actual: 52.2 Expected: 51.4 Previous: 51.3 https://www.dailyfx.com/economic-calendar#2019-11-22
  • 🇺🇸 USD Markit US Services PMI (NOV P), Actual: 51.6 Expected: 51.0 Previous: 50.6 https://www.dailyfx.com/economic-calendar#2019-11-22
USD/JPY Tests Yearly Low as BoJ Refrains - On Cusp of Major Yen Rally?

USD/JPY Tests Yearly Low as BoJ Refrains - On Cusp of Major Yen Rally?

2014-05-21 11:30:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Talking Points:

- USDJPY faces the critical yearly low near 100.75.

- AUDJPY, EURJPY dive accelerate; GBPJPY resilient.

- The forex economic calendar lightens up in the North American session.

The most recent CFTC's Committment of Traders report showed that net-short Japanese Yen positioning increased to 65K contracts from 61K contracts, a curious development during what has been a respectable rally by the Yen in May. In context of the Bank of Japan's decision last night, evidence is building for a major Yen turn around.

In Japan, where food and energy prices are soaring and wage growth is stagnant, consumers are recently dealing with another shock to their purchasing power - the VAT hike in April. Accordingly, with the explosive Q1 GDP figure in their back pocket (+5.9% annualized), Japanese monetary officials have decided that the country is well on its way to achieving the +2% inflation target previously outlined.

To me, this is simple math: the market is skewed short JPY; and the BoJ is taking a stand against further easing. With the US economy sliding and the ECB looking down the path of its own expansive, non-standard easing measures, there may be further room for the USDJPY and EURJPY to run lower.

Read more: GBP/JPY Top Valid Below 171.25, Eyes 169.05; GBP/USD Struggles on CPI

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.