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
Oil - US Crude
Wall Street
More View more
Real Time News
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here:
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here -
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here:
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here:
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:
USD/JPY Slips, Risk Sentiment Wanes Following Lackluster ISM Survey

USD/JPY Slips, Risk Sentiment Wanes Following Lackluster ISM Survey

2017-04-03 15:50:00
David Song, Strategist

Talking Points:

- USD/JPY Struggles, Risk Sentiment Wanes Following Lackluster ISM Manufacturing.

- GBP/USD April Opening Range to Offer Clarity; BoE Governor Carney on Tap.

DailyFX Table





Daily Change (pip)

Daily Range (pip)








USD/JPY Daily Chart

Chart - Created Using Trading View

  • USD/JPY snaps the series of higher highs & lows carried over from the last week of March, with the pair at risk for a larger pullback following the bearish reaction to the U.S. ISM Manufacturing survey; will play close attention to the opening monthly/quarterly range as the pair holds above channel support, while the RSI turns around ahead of oversold territory.
  • Risk sentiment also appears to be abating following the lackluster reading for business sentiment, with global benchmark equity indies highlighting a similar behavior to USD/JPY, but a deeper look at the report showed a material pickup in the employment component, with the gauge climbing to 58.9 in March to mark the highest reading since June 2011; will keep a close eye on the data prints (ADP Employment, ISM Non-Manufacturing and Challenger Job Cuts) leading up to the highly anticipated Non-Farm Payrolls (NFP) report as the U.S. economy is anticipated to add another 175K jobs in March.
  • A pickup in the headline reading for NFP may heighten the appeal of the dollar as the U.S. economy approaches ‘full-employment,’ but Average Hourly Earnings are projected to narrow to an annualized 2.7% from 2.8% in February, and signs of subdued wages may drag on interest rate expectations as the Federal Open Market Committee (FOMC) warns ‘market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
  • A break/close below 111.10 (61.8% expansion) to 111.60 (38.2% retracement) may spur a move back towards channel support, with the first downside hurdle coming in around 109.40 (50% retracement) to 109.90 (78.6% expansion) followed by 108. 30 (61.8% retracement) to 108.40 (100% expansion).





Daily Change (pip)

Daily Range (pip)








GBP/USD Daily Chart

Chart - Created Using Trading View

  • Broader outlook for GBP/USD remains tilted to the downside following the failed attempt to test the 2017 high (1.2706), with the pair largely capped by the Fibonacci overlap around 1.2630 (38.2% expansion) to 1.2680 (50% retracement); with that said, the pound-dollar exchange rate stands at risk for a further decline as it struggles to extend the recent series of higher highs & lows, and the April opening range may reinforce a bearish outlook should the pair continue to trade below the March high (1.2615).
  • The bearish reaction to the poor U.K. Purchasing Manager Index (PMI) could be an earlier indication market participants are skewed to selling Cable with Bank of England (BoE) Governor Mark Carney scheduled to speak later this week; even though the Monetary Policy Committee (MPC) persistently warns ‘there are limits to the extent that above-target inflation can be tolerated,’ Mr. Carney may continue to tame interest rate expectations and largely endorse a wait-and-see approach for monetary policy especially as the U.K. officially start the two-year process of decoupling from the European Union (EU).
  • At the same time, fresh comments from Federal Reserve officials (New York Fed President William Dudley, Philadelphia Fed President Patrick Harker, Fed Governor Daniel Tarullo) may impact the near-term outlook and weigh on GBP/USD should the group of 2017 voting-members show a greater willingness to raise the benchmark interest rate sooner rather than later; however, with Fed Fund Futures now highlighting a less than 60% probability for a June rate-hike, more of the same rhetoric may foster range-bound conditions for the pair as both the Fed & BoE look poised retain a wait-and-see approach for the foreseeable future.
  • Another string of failed attempts to test the key resistance zone around 1.2630 (38.2% expansion) to 1.2680 (50% retracement) may open up the lower-half of the 2017 range as price & the Relative Strength Index (RSI) preserve the bearish formations from earlier this year, with the first downside hurdle coming in around 1.2370 (50% expansion) followed by 1.2270 (23.6% retracement).

For More Updates, Join DailyFX Currency Analyst David Song for LIVE Analysis!

Click HERE for the Entire DailyFX Webinar schedule.

DailyFX Calendar

Click Here for the DailyFX Calendar

If you’re looking for trading ideas, check out our Trading Guides.

Read More:

April Forex Seasonality Sees USD Weakness versus AUD, GBP, and EUR

Technical Weekly: GBP/USD - Setting the Table for Cable

DailyFX Roundtable: Post Brexit Trade Setups and Themes

Silver Price Makes It Nine in a Row, Turning Lower off July Trend-line

Crude Oil Price Forecast: Oil To 200DMA On Libya’s Force Majure Claim

--- 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.

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