News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

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
Subscribe
Please try again
Wall Street
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
More View more
Real Time News
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
Japanese Yen Volatility Near Guaranteed on Huge Week for Markets

Japanese Yen Volatility Near Guaranteed on Huge Week for Markets

David Rodriguez, Head of Product
Japanese_Yen_Volatility_Almost_Guaranteed_on_Huge_Week_for_Markets_Copy_body_Picture_3.png, Japanese Yen Volatility Near Guaranteed on Huge Week for Markets

Fundamental Forecast for Japanese Yen: Neutral

The Japanese Yen took the forex world by storm as it rallied against all major currency counterparts, finishing the week at monthly highs versus the US Dollar and Euro. A busy economic calendar ahead and a build in FX volatility prices points to another big week for the Japanese currency and broader markets.

Price action reminded us that nothing can go up (or down) in a straight line as the USDJPY moved virtually tick-for-tick with the S&P in retracing some of their recent gains. The critical question becomes whether this is merely a correction within a much larger USDJPY and equity market bull market or the start of a larger Japanese Yen and ‘risk’ reversal.

We see several key factors that suggest the JPY may yet rally to fresh highs versus the Euro and US Dollar. Yet the coming week’s US Federal Open Market Committee (FOMC) interest rate decision and Japanese Consumer Price Index (CPI) Inflation data may set the tone for Japanese Yen moves through the foreseeable future.

All eyes turn to the FOMC as nervous investors digest recent stock market sell-offs and whether Fed officials will continue the “Taper” of its Quantitative Easing purchases. A Bloomberg News poll shows that 67 of 71 economists believe the Fed will enact at least another $10B in Taper. Given that the Taper is mostly bullish for the US Dollar and domestic interest rate expectations, we expect a “No-Taper” decision could send the USDJPY to fresh lows.

Yen volatility will likely continue into the following day as a highly-anticipated Japanese CPI inflation report could spark big USDJPY moves. The Bank of Japan’s Quantitative Easing measures have been a major driver of JPY declines (USDJPY gains), but recent inflation readings warned that rising price pressures may prevent the BoJ from enacting more aggressive QE policies. The consensus forecast calls for core CPI inflation to remain at 5-year highs through December, but any topside surprises could quickly drive further Yen gains.

It’s shaping up to be a big week for the Japanese currency, and our Senior Strategist highlights major price levels at which the USDJPY pullback could accelerate. We’ll keep a close eye on economic data and whether financial markets can recover from recent turmoil. It’s especially worth noting that S&P 500 performance in the month of January has predicted February-December moves with just over 60 percent accuracy. We’ll keep the so-called “January Effect” in mind as we watch how stocks finish into the final days of the month. - DR

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

DISCLOSURES