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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here:
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here:
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here:
  • What is your forex trading style? Take the quiz and find out:
  • 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:
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here:
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here:
Yen May Rise as Nasdaq 100 Falls on US-China Tensions, Fiscal Woes

Yen May Rise as Nasdaq 100 Falls on US-China Tensions, Fiscal Woes

Daniel Dubrovsky, Strategist
JPY Yen Price Chart

Source: IG Charts

Japanese Yen Forecast: Bullish

  • Anti-risk Japanese Yen gained on Friday as Nasdaq 100 sank
  • US fiscal stimulus stalemate, China tensions may boost JPY
  • Eyes turn to University of Michigan sentiment at end of week

The anti-risk Japanese Yen heads into what could be an interesting week following the shift in market sentiment on Friday as the tech-heavy Nasdaq 100 underperformed the Dow Jones and S&P 500. This is despite a broadly optimistic US non-farm payrolls report as the nation added over 1.7 million employees. Other more-pressing developments overshadowed the jobs data given that markets are forward looking.

These include escalating US-China tensions and a stalemate between Democrats and Republicans over the next fiscal package. If these allude to risk aversion in the week ahead, then the Yen could receive a bid as it tends to inversely track global stock markets – see chart below. On the other hand, bold efforts from central banks globally to lubricate financial markets could limit downside potential for equities.

The White House moved to attack Chinese tech companies, prohibiting transactions related to WeChat and TikTok on the grounds of national security risks. Tencent, the owner of WeChat and China’s most valuable tech company, saw its share price temporarily decline as much as 10% before trimming losses. The US also sanctioned 11 Chinese officials, including Hong Kong’s Chief Executive Carrie Lam.

This was in response to “Beijing’s policies of suppression of freedom and democratic processes,” following China’s implementation of the imposed national security law in HK earlier this year. Retaliation from China down the road could further sour market mood, likely boosting the Yen, particularly against cycle-sensitive currencies such as the Australian Dollar and New Zealand Dollar.

For updates on developments in the Japanese Yen and risk trends, make sure to follow me on Twitter @ddubrovskyFX

Further amplifying the unease in markets at the end of last week was a lack in US fiscal stimulus. The additional $600 per week unemployment benefit expired at the end of July and an abrupt end to it risks damaging prospects of a swift economic recovery. The White House mulled using executive order as an interim solution for certain provisions of the stimulus deal.

The significance of additional US stimulus and the risk of escalating US-China tensions could mute the impact of lagging data due next week. These include Q2 GDP from the United Kingdom and European Union, which may already be priced in by markets. More attention could be paid to University of Michigan Sentiment on Friday as a relatively timely indicator.

Japanese Yen Versus Risk Trends

Japanese Yen vs Risk trends

Chart Created in TradingView

*Majors-Based Japanese Yen Index Averages JPY Against: USD, EUR, GBP and AUD

*Wall Street Index Averages S&P 500, Dow Jones and Nasdaq 100 futures

--- Written by Daniel Dubrovsky, Currency Analyst for

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

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