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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
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
Mixed
USD/JPY
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
More View more
Real Time News
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/ygwjGNvS61
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/THWhPAS6AM
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/59cdbPc4l7
  • The #Nikkei 225 trades at 4-month highs after a 50% surge from the March low, while the RSI registers its first overbought readings since November 2019. Get your market update from @DanielGMoss here: https://t.co/pOEt698Ooi https://t.co/EHD2EHmQLW
USD/JPY Advance Loses Steam Ahead of BoJ Minutes, BoP Report

USD/JPY Advance Loses Steam Ahead of BoJ Minutes, BoP Report

2016-05-11 15:12:00
David Song, Strategist
Share:

Talking Points:

- USD/JPY Advance Loses Steam Ahead of BoJ Minutes, Balance of Payment (BoP) Report.

- USDOLLAR Continues to Struggle at Near-Term Hurdle; Fed Officials on Tap.

Avoid the pitfalls of trading by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders" series.

USD/JPY

USD/JPY Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • USD/JPY may continue to carve a longer-term series of lower highs & lows as the rebound from 105.54 (2016 low) appears to be getting exhausted, while the Relative Strength Index (RSI) preserves the bearish formation carried over from May 2015.
  • With Japan’s Balance of Payment (BoP) report anticipated to show a widening current-account surplus in March, a positive development accompanied by more of the same in the Bank of Japan’s (BoJ) Meeting Minutes may heighten the appeal of the Yen as the central bank retains a wait-and-see approach after implementing the negative-interest rate policy (NIRP), while the region returns to its historical role as a net-lender to the global economy.
  • Need a break/close above 109.60 (78.6% retracement) to 110.00 (38.2% expansion) to favor a further advance, with near-term support coming in around 104.80 (78.6% expansion) to 105.30 (50% retracement).
USD/JPY SSI
  • The DailyFX Speculative Sentiment Index (SSI) shows the FX crowd remains stuck on the wrong side as they remain net-long USD/JPY since the BoJ’s January 29 interest-rate decision.
  • The ratio currently sits at +1.87 as 65% of traders remain long, with short positions 16.8% higher from the previous week even as open interest stands 6.0% below the monthly average.

Why and how do we use the SSI in trading? View our video and download the free indicator here

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

11870.38

11900.08

11863.54

-0.24

63.06%

USD/JPY Advance Loses Steam Ahead of BoJ Minutes, BoP Report USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • The failed attempts to close above 11,898 (50% retracement) may highlight a near-term exhaustion in the USDOLLAR, and the greenback stands at risk of giving back the advance from earlier this month as it largely preserves the downward trending channel carried over from the end of January.
  • Comments from Cleveland Fed President Loretta Mester, Boston Fed President Eric Rosengren, Kansas City Fed President Esther George, all voting-members on the 2016 Federal Open Market Committee (FOMC), may produce near-term headwinds for the greenback should the central bank officials show a greater willingness to further delay the normalization cycle.
  • Dovish comments from the Fed officials may open up the downside risk, with a break/close below 11,836 (61.8% retracement) to 11,843 (38.2% retracement) raising the risk for a move back towards 11,745 (50% retracement) t0 11,759 (23.6% retracement).
DailyFX Calendar

Click Here for the DailyFX Calendar

Get our top trading opportunities of 2016 HERE

Read More:

Record Trend Following Long Position in Gold

AUD/CAD Into Key Support- Monthly Opening Range In Focus

US Dollar Bear Trap within an Even Bigger Bull Trap?!

USD/JPY Technical Analysis: Has It Bottomed?

--- 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.

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

DISCLOSURES

News & Analysis at your fingertips.