Skip to Content
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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
USD/JPY Fails to Hold Post-FOMC Low- 118.20 Up Next?

USD/JPY Fails to Hold Post-FOMC Low- 118.20 Up Next?

Talking Points:

- USD/JPY Downside Targets Favored Ahead of Japan Consumer Price Index (CPI).

- USD/CAD Rebounds From Range Support Ahead of BoC Governor Stephen Poloz.

- USDOLLAR Preserves Bullish Formation Despite Dismal Durable Goods Report.

For more updates, sign up for David's e-mail distribution list.


USD/JPY Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Lack of momentum to hold the low (119.27) following the FOMC meeting raises the risk for a larger pullback especially as the RSI fails to retain the bullish momentum.
  • Despite forecasts for a slowdown in Japan’s Consumer Price Index (CPI), the Bank of Japan (BoJ) may continue to endorse a wait-and-see approach as Governor Haruhiko Kuroda remains confident in achieving the 2% target for inflation over the policy horizon.
  • Nevertheless, DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long USD/JPY, with the ratio currently standing at +1.90.


USD/CAD Daily Chart
  • Despite the pullback from a fresh monthly high (7696), NZD/USD may continue to track higher over the next 24-hours of trade as New Zealand’s Trade Balance is expected to widen to 350M from 56M in January.
  • A further improvement in growth prospects may highlight a more bullish outlook for the kiwi especially as the bar remains high for the Reserve Bank of New Zealand (RBNZ) to revert back to its easing cycle.
  • Need a close above 0.7675(23.6% retracement) to 0.7700 (50% retracement) to favor a larger advance in NZD/USD.

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: Canadian "Potential"

Webinar: Scalps Favor Dollar Correction- EUR/USD Eyes FOMC Highs

USDOLLAR(Ticker: USDollar):

IndexLastHighLowDaily Change (%)Daily Range (% of ATR)
DJ-FXCM Dollar Index11936.6211966.6911907.65-0.1669.58%
USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Despite the unexpected 1.4% contraction in U.S. Durable Goods Orders, the Dow Jones-FXCM U.S. Dollar index continues to consolidate above the low (11,886) following the Federal Open Market Committee (FOMC) meeting; may continue to see near-term support as the bearish RSI momentum appears to be waning.
  • May see the dollar face additional headwinds as Chicago Fed President Charles Evans, a 2015 FOMC voting-member, favors a rate hike in 2016; will keep a close eye on the final 4Q Gross Domestic Product (GDP) report as market participants now see the growth rate expanding an annualized 2.4% versus an initial forecast of 2.2%.
  • With signs of a near-term bottoming process, topside remain favored with the next region of interest coming in around 11,992 (38.2% retracement).

Join DailyFX on Demand for Real-Time SSI Updates!

MBA Mortgage Applications (MAR 20)11:00--9.5%
Durable Goods Orders (FEB)12:300.2%-1.4%
Durable Goods Orders ex Transportation (FEB)12:300.2%-0.4%
Non-Defense Capital Goods Orders ex Aircrafts (FEB)12:300.3%-1.4%
Non-Defense Capital Goods Shipments ex Aircrafts (FEB)12:300.3%0.2%

Click Here for the DailyFX Calendar

--- 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.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

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.