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.

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
More View more
USD/JPY Continues to Carve Lower-Highs Despite Japan Ratings Cut

USD/JPY Continues to Carve Lower-Highs Despite Japan Ratings Cut

David Song, Strategist

Talking Points:

- USD/JPY Retail Crowd Increases Long Exposure as Fitch Cuts Japan’s Credit Rating.

- GBP/USD Near-Term Advance Vulnerable to Weak 1Q Gross Domestic Product (GDP) Report.

- USDOLLAR Outlook Mired by Slowing Recovery- Bearish RSI Momentum in Focus.

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

USD/JPY

USD/JPY Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Even though Fitch Ratings cut Japan’s credit-rating to A from A+, USD/JPY remains at risk for a further decline as it continues to carve a series of lower highs & lows, while the RSI retains the bearish momentum.
  • Despite bets for a further expansion in the Bank of Japan’s (BoJ) JPY 80T/month asset-purchase program, may see the fresh developments coming out of the policy meeting improve the appeal of the Japanese Yen should Governor Haruhiko Kuroda endorse a wait-and-see approach.
  • DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long USD/JPY as the ratio sits at +2.63, but seeing a decline in open interest heading into the end of April.

GBP/USD

GBP/USD Daily Chart
  • Despite the weaker-than-expected data series from the Consortium of British Industries (CBI), GBP/USD pushes to fresh monthly highs to threaten the bearish RSI momentum carried over from 2014.
  • Nevertheless, the British Pound may face near-term headwinds as the 1Q Gross Domestic Product (GDP) report is expected to show the U.K. economy growing an annualized 2.6% after expanding 3.0% during the last three-months of 2014.
  • With the ongoing series of higher highs & lows, the next topside region of interest comes in around 1.5340 (78.6% retracement) to 1.5350 (50% retracement).

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

Read More:

Price & Time: Sterling Confluence

The Weekly Volume Report: Move Higher In Cable Lacking Volume

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

11886.69

11945.74

11884.18

-0.21

86.93%

USD/JPY Continues to Carve Lower-Highs Despite Japan Ratings CutUSDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Dow Jones-FXCM U.S. Dollar pushes to fresh monthly lows as the ongoing series of weaker-than-expected data prints drag on Fed interest rate expectations; will continue to favor downside targets as a bearish setup takes shape.
  • Bearish RSI momentum continues to highlight the risk for a larger correction in USDOLLAR especially as the softening recovery dampens the Fed’s scope for a June rate hike.
  • Close below 11,899 (61.8% retracement) to 11,901 (78.6% expansion) to open up the next downside targets around 11,828 (78.6% retracement) to 11,836 (61.8% retracement).

Join DailyFX on Demand for Real-Time SSI Updates!

Release

GMT

Expected

Actual

Markit Purchasing Manager Index- Services (APR P)

13:45

58.8

57.8

Markit Purchasing Manager Index- Composite (APR P)

13:45

--

57.4

Dallas Fed Manufacturing Activity Survey (APR)

14:00

-12.0

-16.0

Click Here for the DailyFX Calendar

--- 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.

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.

DISCLOSURES