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
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Gold
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
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • CHF Switzerland August M3 Money Supply YY: Actual: 2.7% Previous: 3.2%
  • Join @DavidCottleFX 's #webinar at 4:00 AM ET/8:00 AM GMT for your weekly update on the top Asia Pacific market drivers that traders should watch this week. Register here: https://t.co/HNf3Axw8s5 https://t.co/KUJecuuyWg
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: US 500: 0.36% Wall Street: 0.32% France 40: -0.10% Germany 30: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/m9Hm0d41Lt
  • European Opening Calls From IG: #FTSE 7345 +0.00% #DAX 12433 -0.28% #CAC 5675 -0.27% #IBEX 9151 -0.31% #STOXX 3558 -0.39%
  • What is prop trading and how can retail traders benefit? Tune into the #podcast episode featuring Morad Askar, aka Futures Trader 71. Only on Global Markets Decoded. Tune in here: https://t.co/2jDvD9L1Er https://t.co/STqSwY7OBT
  • Crude Oil Prices May Fall on ECB Commentary, US PMI Data - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2019/09/23/Crude-Oil-Prices-May-Fall-on-ECB-Commentary-US-PMI-Data.html?utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #CrudeOil #ECB #PMI #OOTT
  • Germany 30 IG Client Sentiment: Our data shows traders are now at their least net-long Germany 30 since May 04 when Germany 30 traded near 12,460.20. A contrarian view of crowd sentiment points to Germany 30 strength. https://www.dailyfx.com/sentiment https://t.co/szH9YPYhHG
  • RT @LiveSquawk: UK PM Johnson: Do Not Wish To Elevate Belief There Will Be A New York Breakthrough On Brexit -A Great Deal Of Progress Has…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.07%, while traders in France 40 are at opposite extremes with 88.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OrePrrlL0a
  • (ASEAN Fundamental Outlook) US Dollar ASEAN Outlook Bullish, Trade Deal Hopes Fade, PHP at Risk #ASEAN #USD #USDPHP #TradeTalks - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/09/23/US-Dollar-ASEAN-Outlook-Bullish-Trade-Deal-Hopes-Fade-PHP-at-Risk.html?utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/0V1NIlGFuR
EUR/JPY, GBP/JPY Close to Revisiting Recent Lows

EUR/JPY, GBP/JPY Close to Revisiting Recent Lows

2016-09-23 12:22:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Talking Points:

- Japanese Yen has remained resilient despite 'risk on' nature of markets past few days.

- British Pound under pressure as Brexit headlines reappear.

- FX volatility set to remain high with FOMC and Brexit vote next two weeks - it's the right time to review risk management principles to protect your capital.

After the Bank of Japan, Federal Reserve, and Reserve Bank of New Zealand rate decisions this week, market participants found themselves in pretty good spirits. After all, then low rate party is set to continue for a little while longer, even while the Fed yells 'last call!' to suggest the party is ending soon.

As has been typically the case, the perception of an extended period of easy credit conditions and low rates has buoyed risk assets over the past few days. Yet while risk has been 'on,' such sentiment hasn't necessarily spread to FX markets. The US Dollar has been treated as a funding currency since Wednesday, for starters. But the most important development has been the resilience of the Japanese Yen.

Conveniently, with the Japanese Yen holding steady during the rising tide of risk sentiment, the low yielding currency is now primed to make further strides should the irrational exuberance die down. Not only is USD/JPY looking weaker, with price trading below its 8-, 21-, and 34-EMAs, as well as its daily Stochastics and MACD trending lower, but so too are EUR/JPY and GBP/JPY. In fact, both EUR/JPY and GBP/JPY seem very technically inclined to probe the lows that developed around the initial Brexit-related selling in June and July.

See the video (above) for technical considerations in EUR/USD, GBP/USD, USD/JPY, AUD/USD, and the USDOLLAR Index.

Read more: LT US Dollar Potential Damaged, Even as Fed Hints at Dec Hike

--- Written by Christopher Vecchio, Currency Strategist

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

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

DISCLOSURES

News & Analysis at your fingertips.