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
More View more
Real Time News
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/zRBB1hmhJm
  • USD/CAD has bounced off a key support area on Friday and could potentially charge higher in the coming week as risk-aversion over coronavirus fears has started to dominate market moves. Get your weekly CAD technical forecast from @DColmanFX here: https://t.co/bySyBXTAdr https://t.co/y6UqD0quGN
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/sPcCTQfaRd
  • The US Dollar slipped last week after the Federal Reserve calmed taper timeline talks. Friday’s non-farm payrolls figure may rekindle upside USD bets if it impressive. Get your weekly USD forecast from @FxWestwater here: https://t.co/4KDanAA0Q1 https://t.co/ZZWpIZlZBo
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/J0F9xIw2I0
  • The Nasdaq 100 and Russell 2000 find themselves with significantly different technical formations but traders may find cause for optimism in both indices. Get your weekly equities technical forecast from @PeterHanksFX here: https://t.co/22fvav620W https://t.co/ajXEhMQhUp
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/wRwHXFbbBW
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/ZWwGB8J6I7
  • Ethereum is starting to outperform Bitcoin again ahead of ETH’s latest upgrade, while Binance continues to pare back business areas amid ongoing regulatory pressure. Get your crypto forecast from @nickcawley1 here: https://t.co/ul4TIfI9bv https://t.co/Ht5Mr0uu91
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/m06h4hjwVP
USD/JPY Stuck in Continuation Pattern Ahead of Japan GDP, BoJ Meeting

USD/JPY Stuck in Continuation Pattern Ahead of Japan GDP, BoJ Meeting

David Song, Strategist
USD/JPY Stuck in Continuation Pattern Ahead of Japan GDP, BoJ MeetingUSD/JPY Stuck in Continuation Pattern Ahead of Japan GDP, BoJ Meeting

Fundamental Forecast for Yen:Neutral

The long-term outlook for USD/JPY remains bullish as the Federal Reserve remains on course to remove the zero-interest rate policy (ZIRP), but the key developments coming out of Japan may produce a larger correction in the exchange rate should the Bank of Japan (BoJ) continue to endorse a wait-and-see approach at the November 19 interest rate decision.

Despite forecasts for a widening trade deficit in Japan, the region’s 3Q Gross Domestic Product (GDP) report may encourage the BoJ to carry its current policy into 2016 amid expectations for an upward revision in the growth rate. As a result, signs of a stronger recovery may prompt BoJ to keep its asset-purchase program JPY 80T, and Governor Haruhiko Kuroda may continue to highlight an upbeat outlook for the world’s third-largest economy as the central bank head remains confident in achieve the 2% inflation goal over the policy horizon.

Nevertheless, the major data prints coming out of the U.S. may fuel expectations for a December Fed rate-hike as the Consumer Price Index (CPI) is expected to show a rebound in the headline reading for inflation, while the core rate is anticipated to expand an annualized 1.9% for the second-consecutive month in October. Sticky price growth may generate a growing dissent within the Federal Open Market Committee (FOMC) as Chair Janet Yellen sees the central bank on course to meet its dual mandate for full-employment and price-stability, but an unexpected slowdown in consumer price growth may undermine bets for a 2015 liftoff amid the ongoing 9-1 split within the central bank.

In turn, the fundamental developments coming out US/Japan are likely to spark increased volatility in USD/JPY as market participants gauge the next move by the Fed/BoJ, but the pair may consolidate ahead of the major event risk as it appears to be stuck within a bull-flag formation. Nevertheless, the deviating paths for monetary policy accompanied by the continuation pattern in price continues to highlight a long-term bullish outlook for the dollar-yen especially as the pair breaks out of the range carried over from back in September.

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

DISCLOSURES