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
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
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
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
Mixed
More View more
Real Time News
  • $USDJPY Daily Pivot Points: S3: 108.36 S2: 109.34 S1: 109.77 R1: 110.76 R2: 111.31 R3: 112.29 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Japan ruling parties to consider budget increase over virus - Nikkei $USDJPY
  • $AUDUSD suffered a critical break beneath support at 0.6678 last week as risk aversion spiked on #coronavirus fears. Get your #AUDUSD market update from @PeterHanksFX here:https://t.co/zWvJh9VhKq https://t.co/xzCcZ5GXuJ
  • RT @spectatorindex: JUST IN: Kuwait sends plane to evacuate its nationals from Milan, Italy
  • Canada reports confirmed coronavirus cases now at 12 $USDCAD
  • $GBPUSD might target February lows near 1.2850 after spot prices quickly reversed lower off the 1.3000 handle. Get your GBP/USD market update from @RichDvorakFX here: https://t.co/EhuvCwtwsz https://t.co/usFJC2VQrU
  • Retail CFD traders measured by IG have cut their long-standing short $SPX exposure even further and pushed long positions to the highest in at least 12-months. About to flip net long for the first time in recent memory: https://www.dailyfx.com/sentiment?ref-author=Kicklighter&CHID=9&QPID=917719 https://t.co/y8ocZTCo4k
  • Precious Metals Update: #Gold 1,639.59 (-0.08%), #Aluminum 1,703.00 (+0.24%), and #Copper 5,685.00 (-0.07%) [delayed]
  • "The April VIX future has closed as much as 1.3 points above May’s during this pullback, the biggest such backwardation between the second and third-month contracts since the idiosyncratic volatility blowup in February 2018" https://t.co/35vDjoQQd3
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: -0.01% 🇨🇭CHF: -0.08% 🇯🇵JPY: -0.20% 🇳🇿NZD: -0.51% 🇬🇧GBP: -0.82% 🇦🇺AUD: -0.91% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XKfLFCRJ0v
Yen Hits New High Against Dollar; Will BoJ Intervene?

Yen Hits New High Against Dollar; Will BoJ Intervene?

2011-10-21 22:59:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:
Yen_Hits_New_High_Against_Dollar_Will_BoJ_Intervene_body_Picture_5.png, Yen Hits New High Against Dollar; Will BoJ Intervene?Yen_Hits_New_High_Against_Dollar_Will_BoJ_Intervene_body_Picture_6.png, Yen Hits New High Against Dollar; Will BoJ Intervene?

Fundamental Forecast for Japanese Yen: Neutral

After weeks of seemingly moving nowhere against the U.S. Dollar, the Japanese Yen broke out on Friday, hitting a new post-war high against the world’s reserve currency, settling the week at 76.29, good for a 1.22 percent gain on the week. In spite of the positive developments out of Europe this week, the Yen easily outperformed its peers, a sign that despite the U.S. Dollar sell off and push higher by equity markets, market participants remain positioned defensively on the currency front.

The major development on Friday was a report out of the Wall Street Journal that suggested further easing may be on the table, this time in the form of more mortgage backed securities (MBS), similar to quantitative easing round 1. If true, the U.S. Dollar immediately becomes an unattractive safe haven, as the Federal Reserve’s quantitative easing policy has added up to little more than monetizing debt, devaluing the U.S. Dollar and boosting inflationary pressures.

In terms of scheduled fundamental risk on the docket, there are a handful of data releases in store for the coming week that could spark further volatility in USD/JPY and other Yen-crosses. The most important figure may be the trade balance data released at the start of trading in Asia on Monday, which is expected to show a surplus for the first time in two-months. The adjusted figure is also expected to move closer towards a surplus, though remain negative as it has since April. Should these figures continue to lag, we may see the central bank implement additional measures to balance the risks for the region as policy makers look for an export-led recovery.

The Bank of Japan is holding its monthly policy meeting, culminating with the rate decision on Thursday. It is widely expected that the Bank of Japan will leave its key interest rate on hold at 0.10 percent, given the long-term deflationary state of the Japanese economy. Likewise, raising the key interest rate would weigh on growth that has been marginal at best, attracting more investors to the Yen. In this regard, markets are not looking to the Bank of Japan rate decision for a surprise but rather for the commentary that ensues.

It’s important to recall that last week the Bank of Japan meeting minutes revealed that ‘further monetary easing might become necessary’ after maintaining its current policy in October.Today’s price action exhibited by the USD/JPY, on the heels of QE3 rumors, will draw finance officials’ collective attention back to the currency war being waged among the safe haven central banks (the Bank of Japan, the Federal Reserve and the Swiss National Bank). Going forward, barring an intervention, the USD/JPY looks to easily move lower on global growth concerns, but if the Bank of Japan looks to get involved, it could be some time before another break lower similar to what occurred on Friday is seen. –CV

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

DISCLOSURES

News & Analysis at your fingertips.