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.



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
Oil - US Crude
Wall Street
More View more
Real Time News
  • 🇨🇦 Average Weekly Earnings YoY (SEP) Actual: 6.9% Previous: 7.9%
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.45%, while traders in NZD/USD are at opposite extremes with 74.75%. See the summary chart below and full details and charts on DailyFX:
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.22% 🇨🇦CAD: 0.04% 🇨🇭CHF: -0.02% 🇳🇿NZD: -0.11% 🇪🇺EUR: -0.11% 🇬🇧GBP: -0.26% View the performance of all markets via
  • Heads Up:🇨🇦 Average Weekly Earnings YoY (SEP) due at 13:30 GMT (15min) Previous: 7.9%
  • It was noted that monetary policy decisions in December would be consistent with prevailing market expectations
  • ECB Minutes - headline inflation was now expected to be in negative territory for longer than had been foreseen in the September projections
  • What are the three ways the stock market impacts the economy? Find out here.
  • Heads Up:💶 ECB Monetary Policy Meeting Accounts due at 12:30 GMT (15min)
  • 🇲🇽 Economic Activity YoY (SEP) Actual: -5.5% Expected: -6.6% Previous: -9.2%
  • 🇲🇽 GDP Growth Rate YoY Final (Q3) Actual: -8.6% Expected: -8.6% Previous: -18.7%
USD Correction Underway- JPY Strength to Remain Limited on BoJ

USD Correction Underway- JPY Strength to Remain Limited on BoJ

2013-05-23 16:00:00
David Song, Strategist





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






Forex_USD_Correction_Underway-_JPY_Strength_to_Remain_Limited_on_BoJ_body_ScreenShot274.png, USD Correction Underway- JPY Strength to Remain Limited on BoJ

Chart - Created Using FXCM Marketscope 2.0

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains 0.52 percent lower from the open, we’re seeing the 30-minute relative strength index come off of oversold territory, and the greenback may track higher during the North American trade as the drop in initial/continuing jobless claims paired with the 2.3 percent rise in New Home Sales instills an improved outlook for the world’s largest economy. In turn, we should see a small rebound going into the end of the week, but the pullback from 10,876 may turn into a more meaningful correction as former trendline support appears to be acting as new resistance. Nevertheless, the bullish sentiment surrounding the reserve currency should gather pace over the near to medium-term amid the ongoing improvement in the world’s largest economy.

Forex_USD_Correction_Underway-_JPY_Strength_to_Remain_Limited_on_BoJ_body_ScreenShot275.png, USD Correction Underway- JPY Strength to Remain Limited on BoJ

Despite the fresh 2013 high in the USDOLLAR, we’re seeing the relative strength index persistently come off of resistance (78), and the greenback remains poised for a larger correction as the oscillator falls back from overbought territory. However, the shift in the Fed’s policy outlook should limit the downside for the reserve currency, and we will be looking for a higher low in the index as we anticipate the bullish sentiment surrounding the dollar to get carried into the second-half of the year. Indeed, St. Louis Fed President James Bullard, who also serves on the FOMC this year, added to the discussion of scaling back on quantitative easing and said the committee is more like to taper its asset purchases than expand the non-standard measure, and argued that the central bank should become a too big of a player in Mortgage-Backed Securities (MBS) as he sees the economy expanding 3.0 percent this year.

Forex_USD_Correction_Underway-_JPY_Strength_to_Remain_Limited_on_BoJ_body_ScreenShot276.png, USD Correction Underway- JPY Strength to Remain Limited on BoJ

The greenback weakened across the board, led by a 1.48 percent rally in the Japanese Yen, but the near-term correction in the USDJPY should produce a higher low in the exchange rate as the upward trend from earlier this year continues to take shape. Indeed, the pullback from 103.72 may gather pace in the days ahead as the Bank of Japan (BoJ) moves to the sidelines, but the deviation in the policy outlook should produce fresh highs in the dollar-yen as Governor Haruhiko Kuroda pledges to retain an aggressive approach in achieving the 2 percent target for inflation. In turn, the pullback in the USDJPY may offer a buying opportunity in June, and we should continue to see a series of higher highs and higher lows in the exchange rate as the BoJ remains poised to further embark on its easing cycle in the second-half of the year.

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Bring the economic calendar to your charts with the DailyFX News App.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

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