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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
Mixed
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Ambiguity abounds. The US open finds the $SPX loitering above its 100-day moving average as well as its technical 'correction' (-10% from highs) and below the neckline of its H&S break https://t.co/MlsRVbzkBi
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: -0.70% Oil - US Crude: -1.32% Silver: -1.67% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4xYTddorjQ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.28%, while traders in EUR/GBP are at opposite extremes with 64.12%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/7OJ5FXh4rF
  • another nasty week in Cable $GBPUSD but most of that sell-off was Monday and Tuesday, after which support came into play. 2712 has now helped to hold the lows for three (going on four) days - even as $USD rally has continued https://t.co/kKURzmx61S https://t.co/eHZZ9rZC9X
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: -0.32% Silver: -0.93% Oil - US Crude: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fdLE2SYbFA
  • While risks may be starting to skew to the upside in Brexit negotiations, GBP/USD continues to trade in choppy fashion, with pullbacks finding support at 1.2720-30. Get your $GBPUSD market update from @JMcQueenFX here:https://t.co/TOrUJKapR1 https://t.co/txDbUikOFZ
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.21% US 500: -0.30% Wall Street: -0.50% France 40: -1.37% Germany 30: -1.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/eOrhf8Ozhy
  • Heads Up:🇺🇸 Fed Williams Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇺🇸 Durable Goods Orders Ex Transp MoM (AUG) Actual: 0.4% Expected: 1.2% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2020-09-25
  • 🇺🇸 Durable Goods Orders MoM (AUG) Actual: 0.4% Expected: 1.5% Previous: 11.2% https://www.dailyfx.com/economic-calendar#2020-09-25
USDOLLAR Poised for Larger Rally- JPY Outlook Remains Bearish

USDOLLAR Poised for Larger Rally- JPY Outlook Remains Bearish

2013-06-24 16:40:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10739.76

10790.3

10728.76

-0.05

68.42%

Forex_USDOLLAR_Poised_for_Larger_Rally-_JPY_Outlook_Remains_Bearish_body_ScreenShot128.png, USDOLLAR Poised for Larger Rally- JPY Outlook Remains Bearish

Chart - Created Using FXCM Marketscope 2.0

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading marginally lower from the open, we’re seeing the greenback find intraday support around the 78.6 percent Fibonacci retracement around 10,729, and the short-term pullback in the reserve currency may offer a buying opportunity as market sentiment falters. As the 30-minunte relative strength index snaps back ahead of oversold territory, the index appears to be persistently carving a series of higher highs paired with higher lows, and the upward trending channel may continue to take shape in the days ahead as the flight to safety gathers pace. At the same time, the shift in the policy outlook favors a bullish forecast over the near to medium-term, and the bullish momentum may gather pace in the second-half of the year as the Federal Reserve appears to be slowly moving away from its easing cycle.

Forex_USDOLLAR_Poised_for_Larger_Rally-_JPY_Outlook_Remains_Bearish_body_ScreenShot129.png, USDOLLAR Poised for Larger Rally- JPY Outlook Remains Bearish

Although New York Fed President William Dudley argued that the central bank ‘was not sufficiently accommodative relative to the state of the economy,’ it seems as though we will see further discussion to taper the asset-purchase program at the July 31 meeting as a growing number of Fed officials turn increasingly upbeat on the economy. The shift in central bank rhetoric should continue to limit the downside risk for the USD, and future comments from the FOMC may highlight a greater willingness to halt its easing cycle in the medium-term as the region gets on a more sustainable path. In turn, our near-term objective remains the 78.6 percent Fib expansion around 10,845, but we may see a more meaningful run at the 10,900 handle should the Fed continue to scale back its willingness to expand the balance sheet further.

Forex_USDOLLAR_Poised_for_Larger_Rally-_JPY_Outlook_Remains_Bearish_body_ScreenShot085.png, USDOLLAR Poised for Larger Rally- JPY Outlook Remains Bearish

Two of the four components advanced against the greenback, led by a 0.30 percent rally in the Japanese Yen, but the Bank of Japan (BoJ) may continue to dampen the appeal of the low-yielding currency as the central bank remains poised to further embark on its easing cycle. Indeed, Deputy Governor Kikuo Iwata reiterated the central bank’s highly dovish tone for monetary policy and said that the board still has options to further address the risks surrounding the region, and the BoJ may expand its balance sheet further in the second-half of the year as the economy continues to face negative price growth. As Japanese consumer prices are projected to contract an annualized 0.4 percent in May, Governor Haruhiko Kuroda may come under increased to pump more liquidity into the system, and the policy outlook continues to warrant a bearish outlook for the Japanese Yen as the central bank retains its aggressive approach to achieve the 2 percent target for inflation.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. 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.

DISCLOSURES