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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
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
  • China National Offshore Oil Corp (CNOOC) plunged nearly 10% in Hong Kong on Monday after Trump Administration put it onto export blacklist alongside several other Chinese firms.
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.27% Gold: -0.86% Silver: -2.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/o4wizaAcjD
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.21% 🇯🇵JPY: 0.18% 🇨🇭CHF: 0.12% 🇪🇺EUR: 0.07% 🇦🇺AUD: 0.06% 🇨🇦CAD: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/t7tsKRwoku
  • Volatility in forex trading is a measure of the frequency and extent of changes in a currency's value. More volatility means more trading risk, but also more opportunity for traders as the price moves are larger. Learn more about volatility here: https://t.co/M04SelwdDE https://t.co/OtLcdaikP1
  • The general tone and trend for global stocks is favorable for higher prices as a new week and the final month of the year arrives.Get your #equities technical analysis from @PaulRobinsonFX here:https://t.co/KXERPuw8sL https://t.co/wtdbaIIWw3
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.03%, while traders in EUR/USD are at opposite extremes with 76.77%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/8T2gdjJ3Xz
  • #Copper futures storming toward $3.50 as Chinese manufacturing and non-manufacturing PMI exceed market expectations Prices look set to challenge key resistance at the 127.2% Fib extension as RSI and MACD climb to their highest levels since July. $CPER #XCUUSD https://t.co/gdtX56jYP5
  • China A50 index attempts to defy gravity amid souring sentiment across the APAC. Financial stocks were leading the gains: - Ping An Insurance (+2.07%) - Citic Securities (+3.08%) - ICBC (+4.93%) - CCB (+2.79%) https://t.co/SN6wabgJpu
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/ 3:00 AM GMT for insight on the cross-market outlook in the week ahead. Register here: https://t.co/E213bTtq5C https://t.co/Gyu02dXP46
  • #ASX200 futures pulling back aggressively as the Trump administration blacklists Chinese firms #SMIC and #CNOOC Breaching confluent support at the Pitchfork median and November 9 high (6551) could ignite a correction towards the November 7 low (6470) $XJO #technicalanalysis https://t.co/uctNXT2MMZ
Rising U.S. CPI, Hawkish Fed Rhetoric to Tame USD/JPY Pullback

Rising U.S. CPI, Hawkish Fed Rhetoric to Tame USD/JPY Pullback

2017-01-14 03:40:00
David Song, Strategist
Share:
Rising U.S. CPI, Hawkish Fed Rhetoric to Tame USD/JPY Pullback

Fundamental Forecast for the Japanese Yen: Neutral

For More Updates, Join DailyFX Currency Analyst David Song for LIVE Analysis!

The failed run at the December high (118.66) keeps the near-term outlook for USD/JPY tilted to the downside, but the key developments coming out of the U.S. economy may prop up the exchange rate next week especially as the Federal Reserve appears to be on course to further normalize monetary policy in 2017.

The U.S. Consumer Price Index (CPI) may get increased attention this time around and spark a bullish reaction in the dollar as the headline as well as the core reading for inflation are both projected to pick up in December. Indeed, signs of stronger-than-expected price growth may push the Federal Open Market Committee (FOMC) to further prepare U.S. households and businesses for higher borrowing-costs as officials warn ‘the near-term forecast for consumer price inflation was somewhat higher than in the previous projection.’

Fresh comments from New York Fed President William Dudley, Minneapolis Fed President Neel Kashkari, Chair Janet Yellen and Philadelphia Fed President Patrick Harker may also heighten the appeal of the greenback as the 2017-voting members are scheduled to speak over the days ahead, and the group of central bank officials may endorse a more hawkish outlook for monetary policy as ‘‘the staff's forecast for real GDP growth over the next several years was slightly higher, on balance, largely reflecting the effects of the staff's provisional assumption that fiscal policy would be more expansionary in the coming years.’ In turn, Fed Fund Futures may continue to highlight bets for a June rate-hike, with market participants currently pricing a greater than 60% probability for a move ahead of the second-half of the year, but more of the same from central bank officials accompanied by another set of mixed data prints may drag on interest rate expectations and generate a more meaningful pullback in USD/JPY.

Rising U.S. CPI, Hawkish Fed Rhetoric to Tame USD/JPY Pullback

That said, USD/JPY stands at risk of staging a larger pullback, with the downside in focus for the days ahead as the pair continues to search for support. The failed test of the December high (118.66) may gain increased interest as a double-top formation appears to be taking shape, and we will keep a close eye on the Relative Strength Index (RSI) as it fails to preserve the upward trend carried over from the summer months and flashes a bearish signal.

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

DISCLOSURES