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
Oil - US Crude
Wall Street
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
  • Heads Up:🇳🇿 NZD N.Z. Government 8-Month Financial Statements due at 21:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-03-30
  • $USDJPY daily pivot points: S3: 105.64 S2: 106.95 S1: 107.46 P: 108.27 R1: 108.77 R2: 109.58 R3: 110.89
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.42% Gold: -0.34% Silver: -2.90% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/JURRvfA9M7
  • The Mexican Peso could come under further selling pressure and push $USDMXN back above the 25.000 handle. Get your USD/MXN market update from @RichDvorakFX here: https://t.co/nuG3l0YpUW https://t.co/RG5xnr118p
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.82%, while traders in US 500 are at opposite extremes with 71.97%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/VDiXoqXTgf
  • RT @HayekAndKeynes: $198bn of buybacks (equivalent to 27% of ’19 spend) have already been suspended
  • Retail CFD traders at IG are building up their short positions to the highest level I have on my records (stretching only back a year). Nearly a 7 fold increase of the short interest at the start of the year https://t.co/SAmUD2ymIz
  • US Equity Close: $SPX +3.30% $DJI +3.07% $NDX +3.62% $RUT +1.10% $VIX -8.93
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.91% France 40: 0.53% US 500: -0.12% Wall Street: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/uRmj2JayN8
  • S&P 500 Continues Recovery, NFP Looms Large for US Data https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/03/30/ES-SPY-SPX-SP500-Continues-Recovery-NFP-Looms-Large-JS.html https://t.co/SZLy1nqPaz
USD/JPY Risks Further Losses on Dovish Yellen Testimony

USD/JPY Risks Further Losses on Dovish Yellen Testimony

2016-06-17 22:36:00
David Song, Strategist
USD/JPY Risks Further Losses on Dovish Yellen Testimony

Fundamental Forecast for JPY: Bullish

For more updates, sign up for David's e-mail distribution list.

Beyond the U.K. Referendum, the semi-annual Humphrey-Hawkins Testimony with Fed Chair Janet Yellen may largely influence USD/JPY in the week ahead as market participants weigh the outlook for monetary policy.

Indeed, the Federal Open Market Committee (FOMC) appears to be on course to further delay its normalization cycle as central bank officials curb their growth outlook and project a more shallow path for the benchmark interest rate. Recent remarks by St. Louis Fed President James Bullard suggest the central bank remains in no rush to implement higher borrowing-costs as the 2016 voting-member sees one rate-hike over the policy horizon, and the FOMC may unanimously endorse a neutral stance over the coming months as the economic outlook remains clouded with high uncertainty.

In turn, Fed Funds Futures now show a less than 20% probability for a rate-hike in July, and market participants may continue to push out bets for higher borrowing-costs should Chair Yellen highlight a more cautious outlook in front of Congress. At the same time, waning demand for large-ticket items may further undermine Fed expectations for a ‘consumer-led’ recovery in 2016 as U.S. Durable Goods Orders are anticipated to contract 0.4% in May, and a weak data print may spur near-term headwinds for the greenback as it weighs on interest-rate expectations.

With that said, another leg lower in USD/JPY may fuel speculation for a currency intervention as Japanese officials favor a stable exchange rate, but the Bank of Japan (BoJ) may stick to the sidelines at the next interest-rate decision on July 29 as Governor Haruhiko Kuroda and Co. continue to monitor the impact of the negative interest rate policy (NIRP) on the real economy. As a result, the BoJ’s wait-and-see approach may continue to heighten the appeal of the Yen especially as Japan returns to its historical role as a net-lender to the global economy.

USD/JPY Risks Further Losses on Dovish Yellen Testimony

The failure to hold above near-term support around 104.80 (78.6% expansion) to 105.30 (50% retracement) raises the risk for a further decline in USD/JPY, and the pair stands at risk of carving fresh 2016 lows over the coming days as the bearish momentum gathers pace, with Relative Strength Index (RSI) slipping into oversold territory for the first time since April.

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


News & Analysis at your fingertips.