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
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
Bullish
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
USD/JPY
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
Gold
Bullish
Oil - US Crude
Bullish
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
Bitcoin
Bearish
More View more
Real Time News
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/925P5uspMg
  • ❗ Heads Up ❗ I will be covering tomorrow's Australian jobs report and the outlook for the Australian Dollar starting at 00:15 GMT on Thursday. Signup for the session below! $AUDUSD $AUDJPY $AUDCAD $AUDNZD - https://t.co/vZonusSFKl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.34%, while traders in Germany 30 are at opposite extremes with 82.36%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ZPq0ljlzKe
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.01% 🇬🇧GBP: -0.00% 🇦🇺AUD: -0.07% 🇨🇦CAD: -0.10% 🇨🇭CHF: -0.11% 🇯🇵JPY: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/bJhUPVJqTa
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.44% Wall Street: 0.43% US 500: 0.41% France 40: 0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/r4xNYs4vlg
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/rGRzQtgtOb
  • Missed my webinar? See the recording and a bullet point summary of the main topics discussed: - #WEF2020 - EU-US #Tradewar tensions - IMF World Economic Outlook unpacked - Key data to watch for the week ahead - Biggest risks facing the global economy https://www.dailyfx.com/forex/market_alert/2020/01/22/Japanese-Yen--Gold-Prices-May-Retreat-on-Davos-Forum.html
  • The Canadian Dollar and Australian Dollar outlook may favor the downside based on positioning signals. This is as USD/CAD faces the BoC while AUD/USD awaits Australia’s jobs report $USDCAD $AUDUSD #BoC - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/22/Canadian-Dollar-Australian-Dollar-Outlook-Positioning-Hints-Lower.html?CHID=9 https://t.co/lmdXFoEPIp
  • The Japanese Yen has faded into 2020 as market risk appetite has held up and hit demand for haven assets. $USDJPY now challenges a key medium-term downtrend, but hasn’t topped it yet.Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/cEUZlD8FoF
  • The current astonishing price difference between #crudeoil and #naturalgas may tell us much less about global growth prospects than you might think. The US gas industry is well supplied with shale producers adding to the glut. https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/22/Crude-Oil-Natural-Gas-Prices-Part-Ways-What-Does-This-Mean-.html?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
USD/JPY Rate Snaps 2018 Opening Range; November-Low on the Radar

USD/JPY Rate Snaps 2018 Opening Range; November-Low on the Radar

2018-01-10 16:30:00
David Song, Currency Strategist
Share:

Talking Points:

- USD/JPY Rate Snaps 2018 Opening Range; November-Low on the Radar.

- USD/CAD Rebound Mired by Growing Bets for BoC Rate-Hike.

DailyFX TableUSD/JPY

USD/JPY extends the decline from earlier this week even as U.S. Treasury yields push to fresh monthly highs, and the pair may continue to give back the rebound from late last year as it snaps the opening range for 2018.

After watching USD/JPY broadly track the U.S. 10-Year Treasury yield in 2017, the key dynamic appears to be unraveling, with the dollar-yen exchange rate now at risk of testing the November-low (110.84) as it extends the series of lower highs & lows from earlier this week. Keep in mind, the recent pickup in market volatility is occurring ahead of the fresh updates to the U.S. Consumer Price Index (CPI), which is anticipated to show a slowdown in the headline reading, and the dollar stands at risk of facing a more bearish fate should the data print dampen the outlook for inflation.

In turn, downside targets remain on the radar for USD/JPY especially as the Federal Open Market Committee (FOMC) is widely anticipated to retain the current policy at its next interest rate decision on January 31, and the pair may face a more meaningful correction over the coming months as the Bank of Japan (BoJ) appears to be approaching the end of its easing-cycle.

USD/JPY Daily Chart

USD/JPY Daily Chart

Interested in trading? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

  • The break of the descending triangle/monthly opening range raises the risk for a further decline in USD/JPY especially as the Relative Strength Index (RSI) continues to track the bearish formation carried over from the summer months.
  • Break/close below the 111.10 (61.8% expansion) to 111.60 (38.2% retracement) region opens up the November-low (110.84), with the next downside area of interest coming in around 109.40 (50% retracement) to 110.00 (78.6% expansion).
USD/CAD

USD/CAD continues to retrace the sharp decline from the previous month as Canada Building Permits narrow 7.7% in November, but the recent rebound in the exchange rate may unravel ahead of the Bank of Canada’s (BoC) next meeting on January 17 amid growing expectations for a rate-hike.

The ongoing improvement in Canada’s labor market may encourage Governor Stephen Poloz and Co. to further normalize monetary policy in 2018 as ‘inflation has been slightly higher than anticipated and will continue to be boosted in the short term by temporary factors,’ and the central bank may prepare Canadian households and businesses for higher borrowing-costs as officials warn ‘higher interest rates will likely be required over time.’ With that said, the broader shift in USD/CAD behavior may continue to unfold in 2018, with the pair at risk of giving back the rebound from the September-low (1.2061) amid the series of failed attempts to push back above the 1.2980 (61.8% retracement) to 1.3030 (50% expansion) region. Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

USD/CAD Daily Chart

USD/CAD Daily Chart
  • USD/CAD may stage a larger rebound as the Relative Strength Index (RSI) bounces back from oversold territory, but the near-term outlook remains tilted to the downside as the oscillator extends the bearish formation from November.
  • May see USD/CAD cling to the monthly opening range as it struggles to push back above the 1.2440 (23.6% expansion) to 1.2510 (78.6% retracement) region, with the next topside hurdle coming in around 1.2620 (50% retracement).
  • Nevertheless, a break/close below 1.2350 (38.2% expansion) raises the risk for a move back towards 1.2210 (50% expansion) to 1.2250 (50% retracement), with the next region of interest coming in around 1.2080 (61.8% expansion), which sits just above the September-low (1.2061).
DailyFX Calendar

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.

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

DISCLOSURES

News & Analysis at your fingertips.