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
Mixed
Wall Street
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
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
  • $GBPUSD doesn’t have the cleanest set of technical indications, but #USD may give indications if it can break its trading range via the $DXY. Get your currencies market update from @PaulRobinsonFX here: https://t.co/PrC9wAaXvU https://t.co/vHYHflwqR3
  • The ongoing contraction in US production may keep #oilprices afloat in June as crude output falls to its lowest level since October 2018. Get your crude #oil market update from @DavidJSong https://t.co/jj1bMLX0DF https://t.co/O9NOqbfHkb
  • watching the #SpaceX launch🍿
  • Major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. How is this likely to impact the month-end rebalancing? Find out from @JMcQueenFX here:https://t.co/MtNrHmXZpD https://t.co/d00z4019XE
  • The medium-term #gold outlook still seems favorable as the #Fed, #ECB and more keep rates around 0. Immediate event risk ahead includes the #RBA and #BoC interest rate decisions, US jobs data and Brexit. Get your gold market update from @ddubrovskyFX here: https://t.co/ABXy78LmUn https://t.co/rCALcGaKOL
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 02:10:00
David Song, Strategist
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.