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
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
Wall Street
Mixed
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
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • US Equities Update (Friday Close): $DJI +1.34% $SPX +1.60% $NDX +2.34% $RUT +1.59% $VIX -7.93%
  • Another turbulent week for the Pound with the currency falling 1.6% against the greenback. Get your $GBPUSD market update from @JMcQueenFX here:https://t.co/WjU4oYpmf7 https://t.co/hkow2om7I6
  • Heads Up:🇺🇸 Fed Williams Speech due at 19:10 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-25
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.07% Gold: -0.16% Silver: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/hbSoMksZVd
  • With South Africa recently easing restrictions in an effort to reopen the economy, investors are still wary about the future of the emerging market. Get your $USDZAR market update from @Tams707 here:https://t.co/f5Jmukipg0 https://t.co/o5Dyok2O99
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in EUR/GBP are at opposite extremes with 65.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/eO8yAFDUvh
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 1.06% Wall Street: 0.73% France 40: 0.65% Germany 30: 0.59% FTSE 100: 0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/UFnW7j9LC3
  • Update on #Cryptocurrencies #BITCOIN +0.29% #BITCOINCASH +0.02% #ETHEREUM +0.51% #RIPPLE +3.72% #LITECOIN +2.19%
  • It took some time for USD/MXN to respond to weakness in equity markets, but this week it came to life as U.S. weakness spread across global markets. Get your $USDMXN technical analysis from @PaulRobinsonFX here:https://t.co/G8b6w1wCzH https://t.co/zEtpARMkMg
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in EUR/GBP are at opposite extremes with 65.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/WGk95Bnjx5
USD/JPY Holds 118.20 Support Ahead of Fed Rhetoric, NFP Report

USD/JPY Holds 118.20 Support Ahead of Fed Rhetoric, NFP Report

2015-03-27 21:40:00
David Song, Strategist
Share:
USD/JPY Holds 118.20 Support Ahead of Fed Rhetoric, NFP Report

Fundamental Forecast for Japanese Yen: Neutral

The fundamental developments coming out of the U.S. economy may continue to undermine the long-term bullish outlook for USD/JPY as recent headlines point to a growing dissent within the Federal Open Market Committee (FOMC).

At the same time, capital flows will also be closely monitored as Japan kicks off its 2015 fiscal-year, but the fresh batch of Fed rhetoric may largely dictate dollar-yen price action going into April especially as the Bank of Japan (BoJ) endorses a wait-and-see approach for monetary policy.

With a slew of Fed officials (Stanley Fischer, Jeffrey Lacker, Dennis Lockhart, Loretta Mester, Esther George, John Williams Janet Yellen, Lael Brainard and Narayana Kocherlakota) scheduled to speak next week, the new commentary may highlight a further delay in the normalization cycle as an increasing number of central bank officials see scope to retain the zero-interest rate policy beyond mid-2015. As a result, a further deterioration in interest rate expectations may trigger another test of near-term support around 118.20 (61.8% retracement), and USD/JPY may continue to congest ahead of the second-half of the year as the central bank remains in no rush to normalize monetary policy.

Nevertheless, the U.S. Non-Farm Payrolls (NFP) report may generate a bullish reaction in dollar-yen as market participants anticipate another 250K expansion in employment, while the jobless rate is projected to hold at an annualized 5.5% - the lowest reading since May 2008. However, another unexpected downtick in Average Hourly Earnings may drag on the greenback as Fed Chair Yellen highlights a cautious stance on the economy, especially as the central bank struggles to achieve the 2% target for inflation.

With that said, the 118.20 (61.8% retracement) support zone will be closely watched going into the week ahead, and the pair remains vulnerable for a further decline as it continues to carve a series of lower-highs. In turn, a failure to preserve the March low (118.32) may open the door for a move back towards the 117.15 region (78.6% expansion) should the key event risks dampen bets for a mid-2015 Fed rate hike.

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

DISCLOSURES