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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
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
Oil - US Crude
Bullish
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/WS2LkCt9gX
  • Two major events will dominate #Euro trading in the coming week: an #ECB meeting on Eurozone monetary policy, followed by an #EU summit to reach agreement on a recovery fund. Get your #currencies update from @MartinSEssex here: https://t.co/wnXjTDizMv https://t.co/tmxDfkgmSv
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/UQRaKusFP7
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:https://t.co/vg7w10la3j https://t.co/nUvvI3WQpx
  • Australian Dollar is up fractionally this week with Aussie stalling just below the yearly range highs. Here are the levels that matter on the $AUDUSD technical chart. Get your #currencies update from @MBForex here: https://t.co/jYzBK1qH4s https://t.co/gYj4tFbsGS
  • What is the road ahead for equities this coming week? Check out my fundamental outlook below! #DowJones #SP500 #DAX30 #FTSE100 https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/07/11/Dow-Jones-SP-500-DAX-30-FTSE-100-Outlook-Stocks-Week-Ahead.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HjIBDKqwvO
  • #Gold price gains seem to depend on monetary stimulus expansion and may turn lower as contraction of the Federal Reserve’s balance sheet underpins the US Dollar. Get your #metals update from @DanielGMoss here: https://t.co/8NHLc8jdhw https://t.co/0YYKXqtY9V
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/DDCWX1In7k
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/kvFgxQjLb0
  • The ASX 200 and AUD/JPY are at risk of losses as cases of Covid-19 continue to climb in Victoria, Australia’s second-most populous state. Get your #ASX market update from @DanielGMoss here: https://t.co/O0LNvhy4eY https://t.co/mS9vLeVU5Y
Japanese Yen to Hold Range Ahead of BoJ- Will Kuroda Deliver?

Japanese Yen to Hold Range Ahead of BoJ- Will Kuroda Deliver?

2013-03-22 23:39:00
David Song, Strategist
Share:
Japanese_Yen_to_Hold_Range_Ahead_of_BoJ-_Will_Kuroda_Deliver_body_Picture_1.png, Japanese Yen to Hold Range Ahead of BoJ- Will Kuroda Deliver?

Japanese Yen to Hold Range Ahead of BoJ- Will Kuroda Deliver?

Fundamental Forecast for Japanese Yen: Bearish

The Japanese Yen continued to consolidate against its U.S. counterpart, but the range—bound price action in the USDJPY may be short lived as Haruhiko Kuroda takes the helm of the Bank of Japan (BoJ). As the economic docket for the following week is expected to show a further slowdown in price growth, a weakening outlook for inflation may fuel speculation for more monetary easing, and the central bank may look to expand the balance sheet further at the next interest rate announcement on April 4.

Indeed, Mr. Kuroda pledged to ‘do everything we can to get the economy out of deflation’ during his first press conference as the BoJ governor and remained confident that the central bank will be able to achieve the 2% target for inflation as the new central bank head looks to broaden its asset purchases, with could include Real Estate Investment Trusts (REIT). As the new government pushes the central bank to further expand the monetary base, prospects for negative real interest rates (real interest rate = nominal interest rates – inflation) in Japan should continue to limit the appeal of the Yen, but Governor Kuroda may struggle to achieve the price growth target amid the underlying weakness in the real economy.

New to FX? Register for this free 20 minute course HERE and learn common FX terms like leverage and how to implement conservative amounts.

Former BoJ Governor Masaaki Shirakawa argued that ‘it’s necessary for a wide range of institutions to make efforts to boost competitiveness and growth potential’ as Prime Minister Shinzo Abe looks to obtain a greater influence over monetary policy, and warned threatening the central bank’s independence may dampen trust in the low-yielding currency while hosting his final press conference as the central bank head. At the same time, former European Central Bank (ECB) President Jean-Claude Trichet said that the ‘demographics are a big problem’ after encouraging the region to implement ‘structural reforms,’ and went onto say that the central bank should not carry ‘too much responsibility’ as there remains limits to what monetary policy can achieve. Despite expectations of seeing a major development at the April 3-4 meeting, we may see the new central bank head stick to the sidelines until the his second rate announcement on April 26, which could serve as the fundamental catalyst to spark a more meaningful reversal in the USDJPY.

As market participants weigh the outlook for monetary policy, the USDJPY looks poised to preserve the range from 94.00-96.50, but favor buying dips in the exchange rate as the broader trend remains tilted to the upside. At the same time, a look at the relative strength index shows support around the 49 region, and we will keep a close eye on the oscillator as the pair tracks sideways. - DS

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

DISCLOSURES

News & Analysis at your fingertips.