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
Bearish
Oil - US Crude
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
Wall Street
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
Gold
Bearish
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Uz6LKXdR2k
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/fGi6YgqqQt
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/fdigOgkmio
  • A forex trader is strategic, disciplined and always switched on to the markets. Learn how to build an FX mindset here: https://t.co/tB3aAErd70 https://t.co/Ilqz8BWTk0
  • The final ‘full’ week of the year brings about the last wave of significant event risk from around the globe, including three central bank rate decisions (Fed, BOE, & BOJ). Get your market update from @CVecchioFX here:https://t.co/PhqxSPlngI https://t.co/XX57vSjQwV
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/HOvzuOICQx
  • Ever wonder if there are other chart types that can be sued for technical analysis? HLOC charts are discussed in the following article as well as their pros and cons. Learn more here: https://t.co/qV3c7a4YR3 https://t.co/32hYzqhuZ9
  • The Australian Dollar sits on the crossroads of Treasury yields, the S&P 500 and US fiscal stimulus expectations. Will $AUDUSD gains slow? Chinese Q4 GDP and Australian jobs data are due. Get your market update from @ddubrovskyFX here: https://t.co/BsYmmWFYOH https://t.co/HhLqb2iVgk
  • #Gold prices have come under significant pressure to kick-off 2021. However, the formation of bullish technical patterns across multiple timeframes suggests that a rebound higher may be at hand. Get your market update from @DanielGMoss here: https://t.co/Dpf8N4Fh0T https://t.co/pnZpnM9yT5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/yCtLFemdNc
Japanese Yen Looks to US PCE and Continuing Trade Developments

Japanese Yen Looks to US PCE and Continuing Trade Developments

2018-03-24 00:30:00
Daniel Dubrovsky, Analyst
Japanese Yen Looks to US PCE and Continuing Trade Developments

Japanese Yen Fundamental Forecast: Neutral

Talking Points:

  • Anti-risk Japanese Yen appreciated last week as sentiment soured amidst white house developments
  • Domestic economic calendar docket lacking key event risks, the focus turns to external factors again
  • Keep an eye out for the US PCE core release and reactions from nations to the tariff exemptions

Trade all the major global economic data live and interactive at the DailyFX Webinars. We’d love to have you along.

This past week was a volatile one with plenty of developments which saw stock markets fall and the anti-risk Japanese Yen emerge higher against its major peers. A relatively less hawkish FOMC monetary policy announcement on Wednesday fueled a US Dollar selloff across the aboard and the Yen benefited from it. But things really started heating up the following day.

Seemingly endless developments out of the white house ignited aggressive risk aversion. First Donald Trump’s lead lawyer John Dowd resigned. Then, the president signed off on $50 billion in tariffs aimed at China. Less than eight hours after Dowd’s resignation, National Security Adviser H.R. McMaster met the same fate. All of this helped take USD/JPY to its lowest level since November 2016.

The week ahead will probably leave the Japanese Yen once again mostly vulnerable to external developments as opposed to domestic ones. To give an example, when Japan’s February CPI report crossed the wires at its highest since March 2017 last week, the currency failed to offer a meaningful reaction even though prices moved steadily towards the Bank of Japan’s inflation target.

As far as the local docket goes next week, we have a jobless report due where unemployment is expected to rise to 2.6% from 2.4%. However, the more prominent risk here for the Japanese Yen domestically speaking can be the aftermath of the Shinzo Abe scandal and whether or not it may lead to a new regime change, his popularity has been falling since. We will also see how or if the country responds to it not being included in the tariff exemption list that Mr. Trump announced last week. They are as follows:

US Tariff Exempted Countries:

  • Argentina
  • Australia
  • Brazil
  • Canada
  • European Union
  • Mexico
  • South Korea

On the external front, keep an eye on the US PCE core outcome. This is the Fed’s preferred measure of inflation. Data out of the country has been coming out mostly in-line with economists’ expectations. An unexpected upside surprise here might fuel stronger hawkish Fed rate hike expectations and if stocks fall on this, the Japanese Yen could rise. Although the previous headline inflation report failed to spark much of a reaction.

In addition, with the grace period for the US tariffs now expired and the exempted countries listed, keep an eye out for how exposed nations respond. Shortly after Trump announced tariffs targeted against China, the country retaliated by announcing reciprocal tariffs on US steel, aluminum, pork and wine products. Needless to say, the anti-risk Yen rose amidst these developments.

Japanese Yen Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

https://www.dailyfx.com/free_guide-tg.html?ref-author=Dubrovsky

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

DISCLOSURES