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
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
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.81%, while traders in USD/CAD are at opposite extremes with 70.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gycgoR3uaf
  • RT @charliebilello: Volatility Index: +47% today, 7th largest 1-day spike w/ data going back to 1990. $VIX https://t.co/oqnst05BNi
  • RT @LiveSquawk: Fed's Mester: Economic Impact Of Coronavirus Outbreak Depends On How Deep And Long-Lasting It Is
  • US equity close: $SPX -110 (-3.3%) $DJI -1031 (-3.6%) $NDX -355 (-3.7%)
  • RT @ClevelandFed: #LorettaMester: My current view is that monetary policy is well-calibrated to support our dual mandate goals, and a patie…
  • RT @PowerLunch: Restrictions in China are still tight as the country faces the Coronavirus. @onlyyoontv tells us more about authorities co…
  • Well, that was not a very encouraging day for capital markets. Remember, flat is also an option in the markets
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.02% US 500: 0.01% Germany 30: -0.45% France 40: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JkDZ0UQlwb
  • Gold prices have remained bid for much of the past two weeks, and of recent, as that risk aversion theme has further priced-in to global markets. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/ylBpk8vHvX https://t.co/mRbft4222q
  • #Crypto update: $BTC -2.9% $BCH -6.3% $LTC -5.5% $XRP -4.9% $ETH -3.2%
Japanese Yen Strength to Be Undermined by Slowing Inflation

Japanese Yen Strength to Be Undermined by Slowing Inflation

2013-10-18 23:42:00
David Song, Currency Strategist
Japanese_Yen_Strength_to_Be_Undermined_by_Slowing_Inflation_body_112233445566.png, Japanese Yen Strength to Be Undermined by Slowing Inflation

Japanese Yen Strength to Be Undermined by Slowing Inflation

Fundamental Forecast for Japanese Yen: Neutral

The Japanese Yen regained its footing against the dollar, with the USDJPY slipping back below the 98.00 handle, and the pair may continue to give back the rebound from earlier this month as it carves a lower high just below the 99.00 region.

With the U.S. government back online, key metrics coming out of the world’s largest economy is likely to spark increased volatility next week, but the shift in the policy outlook may continue to drive the exchange rate lower as we see a growing number of Fed officials scale back their willingness to taper the asset-purchase program. Indeed, it seems as though the Federal Open Market Committee (FOMC) will retain its highly accommodative policy stance throughout the remainder of the year in order to combat the fiscal drag, and the central bank may delay its exit strategy until the March 18-19 meeting as the temporary rise in the debt ceiling is set to expire on February 7.

At the same time, headlines surrounding Japanese Prime Minister Shinzo Abe’s ‘Third Arrow’ stimulus plan may continue to heighten the appeal of the Yen as it gives the Bank of Japan (BoJ) more room to retain its current policy, and the wait-and-see approach may produce further declines in the USDJPY as the shift in the policy outlook. However, Japan’s Consumer Price report may weigh on the Yen as the core rate of inflation is expected to narrow to an annualized 0.7% from 0.8% in August, and we may see BoJ Governor Haruhiko Kuroda come under increased pressure to further embark on the easing cycle if the data undermines the central bank’s pledge to achieve the 2% target for price growth by 2015.

Nevertheless, the technical outlook continues to instill a bearish forecast for the USDJPY as the Relative Strength Index maintains the downward trend dating back to May, and we may see fresh monthly lows going into the FOMC meeting on October 29-30 as market participants scale back bets of seeing the Fed taper the $85B asset-purchase program. - DS

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


News & Analysis at your fingertips.