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.

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
Bearish
Oil - US Crude
Bearish
Wall Street
Bullish
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
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Join @MBForex at 8:30 AM ET/12:30 PM GMT for his weekly strategy #webinar Register here: https://t.co/VAnAfZU02T https://t.co/57Z0cB6HsJ
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-28
  • 🇲🇽 Unemployment Rate (AUG) Actual: 5.2% Previous: 5.4% https://www.dailyfx.com/economic-calendar#2020-09-28
  • 🇲🇽 Unemployment Rate (AUG) Actual: 5.2% Previous: 5.4% https://www.dailyfx.com/economic-calendar#2020-09-28
  • 🇲🇽 Balance of Trade (AUG) Actual: $6.116B Previous: $5.799B https://www.dailyfx.com/economic-calendar#2020-09-28
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.52%, while traders in EUR/GBP are at opposite extremes with 63.81%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/omse6hWKhs
  • Heads Up:🇲🇽 Unemployment Rate (AUG) due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-28
  • Heads Up:🇲🇽 Balance of Trade (AUG) due at 11:00 GMT (15min) Previous: $5.799B https://www.dailyfx.com/economic-calendar#2020-09-28
  • Tune in to @CVecchioFX 's #webinar at 7:30 AM ET/11:30 AM GMT for insight on major event risk in the week ahead. Register here: https://t.co/X8TIhpKxtF https://t.co/iOooFjHqZM
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.39% Oil - US Crude: 0.24% Gold: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3Xcd23YqRL
USD/JPY Fails to Retain Bullish Momentum Ahead of U.S. CPI, 4Q GDP

USD/JPY Fails to Retain Bullish Momentum Ahead of U.S. CPI, 4Q GDP

2015-03-20 22:19:00
David Song, Strategist
Share:
USD/JPY Fails to Retain Bullish Momentum Ahead of U.S. CPI, 4Q GDP

Fundamental Forecast for Japanese Yen: Neutral

In light of the market reaction to the Federal Open Market Committee’s (FOMC) March 18 meeting, the fundamental developments coming out of the world’s largest economy may continue to dictate the near-term price action for USD/JPY as Janet Yellen and Co. shows a greater willingness to retain the zero-interest rate policy (ZIRP) beyond mid-2015.

With that said, a slowdown in Japan’s Consumer Price Index (CPI) may have a limited impact on the dollar-yen especially as the Bank of Japan (BoJ) largely endorses a wait-and-see approach, while the U.S. data prints may foster increased volatility in the exchange rate as market participants continue to speculate on the Fed’s first rate hike. An uptick in the core U.S. CPI paired with an upward revision in the 4Q Gross Domestic Product (GDP) report may heighten the appeal of the greenback, but the disinflationary environment may become a growing concern for the central bank as the core Personal Consumption Expenditure (PCE), the Fed’s preferred gauge for price growth, is expected to slow to 1.1% from 1.4% in the three-months through September.

The fresh forecasts coming out of the central bank suggests that FOMC will further delay its normalization cycle as the committee pushes out its interest rate dot-plot, and the Fed may sound more dovish heading into the second-half of the year amid the uncertainties surrounding the global economy. In turn, the dollar remains at risk of facing additional headwinds over the coming months, and the near-term pullback may ultimately turn into a larger correction should the U.S. data prints fail to meet market expectations.

As a result, the near-term topping process around the 122.00 handle may pave the way for a further decline in USD/JPY, and the pair may continue to give back the advance from earlier this year as the Relative Strength Index (RSI) fails to retain the bullish trend carried over from back in January. The downside break in the oscillator favors the approach to ‘sell bounces’ in the dollar-yen, but the pair may face choppy price action going into the key event risks as market participants continue to digest the latest developments coming out of the U.S.

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

DISCLOSURES