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
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
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
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • (Asia AM) The Japanese #Yen and US Dollar sank as the Australian Dollar rose despite escalating US-China tensions over Hong Kong. $USDJPY may be readying to turn lower after clearing support - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/05/26/Yen-Sank-Despite-US-China-Hong-Kong-Tensions-USDJPY-May-Fall.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/GxJ7D7W5Ov
  • RBNZ's Orr: Sees 'more room to go' on home loan interest rates -BBG
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here:https://t.co/LkEFJViPWY https://t.co/6QH27c5ZHS
  • RBNZ's Orr: Expects credit demand to lift and bank lending to match greater credit demand -BBG
  • RBNZ Governor Adrian Orr: Sees more room for banks to increase lending, banks have done well with loan restructures -BBG $NZDUSD #RBNZ
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/12:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/AyCMqK52oa
  • BoC's Poloz: Negative rates needed only in extreme conditions, extreme conditions may happen if fiscal policy not used -BBG $USDCAD
  • S&P500: Still, risks to the rally remain so traders will have to discern whether this is an honest breakout or a mere head-fake higher. Get your #equities market update from @PeterHanksFX here:https://t.co/zDlsun6VIF https://t.co/IQ1ITcVj7I
  • Very interesting to see the 'pro-risk' Australian Dollar diverge with the #SP500 during Tuesday's Wall Street session. #USD struggled to capitalize on its 'safe-haven' appeal as stocks retreated. Gentle reminder that asset relationships and traits are not always absolute $AUDUSD https://t.co/bs8uXo6q6S
  • $EURUSD Daily Pivot Points: S3: 1.0809 S2: 1.0858 S1: 1.0881 R1: 1.093 R2: 1.0957 R3: 1.1007 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
Japanese Yen at Risk for More Losses Ahead of BoJ- Remains Oversold

Japanese Yen at Risk for More Losses Ahead of BoJ- Remains Oversold

2013-02-01 01:27:00
David Song, David Song,
Share:
Japanese_Yen_at_Risk_for_More_Losses_Ahead_of_BoJ-_Remains_Oversold_body_Picture_1.png, Japanese Yen at Risk for More Losses Ahead of BoJ- Remains Oversold

Japanese Yen at Risk for More Losses Ahead of BoJ- Remains Oversold

Fundamental Forecast for Japanese Yen: Bearish

The Japanese Yen continued to weaken against its major counterparts as Prime Minister Shinzo Abe floated the idea of changing the law that governs the Bank of Japan, and the low-yielding currency remains poised to face additional headwinds over the near to medium-term as the new administration takes a more aggressive approach in influencing monetary policy. Indeed, Mr. Abe is pushing for greater reform at the BoJ as the board adopts a 2% target for inflation, and it seems as though the central bank will struggle to retain its independence as the government pledges to tackle deflation.

Although the BoJ announced it would wait till 2014 to implement open-ended asset purchases, Deputy Governor Hirohide Yamaguchi, who’s set to leave the central bank in March, argued that ‘it could be the case that further accommodation will be pursued,’ and we may see the central bank expand its balance sheet further in the coming months amid the ongoing slack in the real economy. As Governor Masaaki Shirakawa’s term expires in April, there’s growing speculation that the prime minister will seat a candidate who would share similar views on policy, and we may see the central bank struggle to preserve its independence as the government aims to have a larger sway on monetary policy. In contrast, Japanese Finance Minister Taro Aso and Economy Minister Akira Amari saw limited scope to change the decree that the BoJ operates under as three members are scheduled to depart from the board this year, and we may see the government appoint ultra-doves in the coming months in an effort to quickly achieve the 2% target for inflation. Nevertheless, as the economic docket for the following week is expected to show the trade deficit narrowing in December, a marked improvement in the metric may limit the bearish sentiment surrounding the Japanese Yen, and we may see a short-term correction ahead of the next BoJ interest rate decision on February 14 as the central bank moves to the sidelines.

Although the relative strength index on the USDJPY continues to highlight an overbought signal, speculation for more easing may produce further weakness in the Yen, and we will need to see the oscillator push below the 60 figure for a more meaning correction as it holds up as interim support. Until then, we will look for further advances in the dollar-yen, and the pair remains poised to retrace the decline from back in 2010 amid the deviation in the policy outlook. - DS

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

DISCLOSURES

News & Analysis at your fingertips.