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
Bearish
Gold
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
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.79%, while traders in USD/CAD are at opposite extremes with 67.95%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Wrdc0JzKNe
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/OlWS2GLtjb
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Silver: 0.78% Gold: 0.42% Oil - US Crude: -1.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GVZUxbwFHZ
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.44% 🇨🇭CHF: 0.42% 🇯🇵JPY: 0.37% 🇳🇿NZD: 0.26% 🇬🇧GBP: 0.10% 🇨🇦CAD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/jHAHL6TLIY
  • Popular carry play: $EURMXN. Reminder that non-commercials and asset managers had been holding near record longs in $MXN, leaving the currency vulnerable to a deeper pullback as risk appetite sours https://t.co/UcxpPFnQb1
  • #Euro May Fall on Eurozone Confidence Data as #COVID-19 Spreads https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/02/27/Euro-May-Fall-on-Eurozone-Confidence-Data-as-COVID-19-Spreads.html
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.83% US 500: -0.87% France 40: -1.98% Germany 30: -2.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qdKxJadnUE
  • Carry unwind lifting $EURUSD above 1.09, eyes on notable option expiries - 1.0900 (632mln), 1.0915-25 (1.2bln), 1.0955 (1bln)
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/SbDPHN0Win
  • European Opening Calls From IG #FTSE 6870 -2.45% #DAX 12451 -2.54% #CAC 5544 -2.47% #AEX 566 -2.74% #MIB 22818 -2.58% #IBEX 9107 -2.25% #OMX 1743 -2.20% #STOXX 3486 -2.56%
Japanese Yen Poised to Weaken Ahead of the BoJ Rate Decision

Japanese Yen Poised to Weaken Ahead of the BoJ Rate Decision

2010-07-09 21:19:00
Michael Wright, Currency Analyst
Share:

Taking a look at the Japanese economic docket last week, the most notable event was the machine orders report. Figures plummeted 9.1 percent amid economists’ forecasts for a 3.0 percent decline, with core machinery marking its largest fall since August 2008. The pull back is of particular note because the decrease is due to unrelenting weakness in business investment, and may therefore add additional weight onto the labor market which is presently struggling. Furthermore, the leading index slid back to 98.7 in May from 101.7 the month prior. Thus, additional disappoints maybe in the horizon due to the fact that movements in the leading index precede larger developments. Nonetheless, bankruptcies tumbled 19.3 percent in June, a signal that business confidence is indeed deteriorating.

As for this upcoming week, Japan is expected to show a drop in consumer confidence on Tuesday as the unemployment rate as of late advanced to a fresh yearly high. A reading far below economists’ expectations will likely set the stage for JPY price action leading up to Bank of Japan’s monetary policy meeting on Thursday. Indeed, market participants are weighing in a zero percent chance that the central bank will raise borrowing costs twenty five basis points at its policy meeting, according to the Credit Suisse overnight index swaps. Last month, the central bank announced that it will provide banks with 3 trillion yuan worth of low interest rates. Thus, the BoJ will likely keep rates at its record low as policy makers evaluate the impacts of its decision.

With regards to price action, Japanese yen weakness may carry over into next week’s trade as markets increase their appetite for risk. Looking at the USD/JPY from a technical perspective, price action has broken above the 10-day SMA, which is resistance turned support, while the pair rebounded from oversold territory. Despite our speculative sentiment index standing at 3.03, and signaling for further losses, it is noteworthy that this reading is off of its high of 5.0 from earlier this week. All in all, disappoints in Japanese fundamental data paired with a bullish USDJPY technical outlook may lead the exchange rate higher this week. - MW

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

DISCLOSURES

News & Analysis at your fingertips.