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
GBP/USD
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
More View more
Real Time News
  • $EURUSD thwarted by support I think this'll break during Q4 - the next big support zone below runs from around 1448-1500 https://t.co/LnFGRIyfg3
  • 10-year US Treasury yields touching multi-week highs. EUR/USD is likely to re-test 1.1700 in the short-term. Get your $EURUSD market update from @nickcawley1 here:https://t.co/JBdGJ9iqhf https://t.co/hvLu72yDsD
  • This 👇 https://t.co/UH4A7C2HOO
  • $USDJPY has spanned its full, tight range. The has slightly broadened its smallest 30-day trading range (as a ratio of spot) on record. Serious breakout candidate should a firm risk or Fed rate speculation wind come through https://t.co/XyajC1dAee
  • Seems this once-Hawkish view from Cleveland Fed President Loretta Mester is becoming the consensus for the FOMC https://t.co/uHAmcRFNlG
  • - Supports November taper - Still some distance from maximum employment goal needed for raising rates
  • Fed's Mester - Economy has met substantial further progress bar for taper - On inflation bar for raising rates has largely been met - Expect conditions for first rate hike to be met by end of next year
  • Heads Up:🇬🇧 BoE Tenreyro Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-24
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/HFl8E8exht
  • Credit Suisse dumped Evergrande exposure on risk fears - FT
USD/JPY Rate Rebound Unravels Even as BoJ Sticks to Dovish Script

USD/JPY Rate Rebound Unravels Even as BoJ Sticks to Dovish Script

David Song, Strategist

FX TALKING POINTS:

- USD/JPY Rebound Unravels Even as Bank of Japan (BoJ) Sticks to Dovish Script. Relative Strength Index (RSI) Clings to Trendline Support.

- AUD/USD Snaps Bullish Sequence as Recovery Flops Ahead of February High (0.7989). Monthly Range in Focus Ahead of Federal Open Market Committee (FOMC) Meeting.

DailyFX Table

USD/JPY REBOUND UNRAVELS EVEN AS BANK OF JAPAN (BOJ) STICKS TO DOVISH SCRIPT

USD/JPY Table

The near-term rebound in USD/JPY unravels even as Bank of Japan (BoJ) Governor Haruhiko Kuroda continues to strike a dovish tone in front of lawmakers, and the pair appears to be on track to test the monthly-low (105.25) as it carves a fresh series of lower highs & lows.

The fresh remarks coming out of the BoJ suggest the central bank is in no rush to wind down its Quantitative/Qualitative Easing (QQE) Program with Yield-Curve Control as ‘many members expressed the view that, as there was still a long way to go to achieve the price stability target of 2 percent, it was necessary to maintain the current highly accommodative financial conditions.’ As a result, Governor Kuroda and Co. may stick to its wait-and-see approach at the next rate decision on April 27, but the BoJ may have little choice but to gradually alter the monetary policy outlook over the coming months as the central bank anticipated inflation to hit the 2% target in fiscal-year 2019.

Recent price action suggests the rebound from the 2018-low (105.25) has run its course following the failed attempt to close above the 106.70 (38.2% retracement) to 107.20 (61.8% retracement) region, while the Relative Strength Index (RSI) fails to break out of the bearish formation carried over from last year and now sits on trendline support.

USD/JPY DAILY CHART

USD/JPY Daily Chart
  • May see USD/JPY extend the recent series of lower highs & lows as the bullish momentum abates, with the RSI on the cusp of flashing a bearish signal if it fails to hold trendline support.
  • Need a break/close below 105.40 (50% retracement) bringing the downside targets back on the radar for USD/JPY, with the next region of interest coming in around 104.10 (78.6% retracement) to 104.20 (61.8% retracement).

AUD/USD SNAPS BULLISH SEQUENCE AS RECOVERY FLOPS AHEAD OF FEBRUARY HIGH

AUD/USD Table

AUD/USD snaps the bullish sequence from earlier this week, with the failed attempt to test the February-high (0.7989) raising the risk for a larger pullback as market attention turns to the Federal Open Market Committee (FOMC) interest rate decision on March 21.

The limited reaction to the slew of mixed U.S. data prints from earlier today suggest the figures will do little to alter the monetary policy outlook, and Chairman Jerome Powell and Co. may largely endorse a hawkish outlook for monetary policy as the central bank appears to be following a similar path to 2017.

Atlanta Fed GDP Now

The majority of the FOMC may continue to project three rate-hikes for 2018 as fresh updates coming out of the U.S. economy shows a further improvement in labor market dynamics, and the recent strength in the greenback may persist going into the week ahead as market participants expect the central bank to further normalize monetary policy over the coming months. However, a growing number of Fed officials may highlight a more shallow path for the benchmark interest rate amid signs of slowing economic activity, and like the Bank of Canada (BoC), Chairman Powell and Co. may implement a dovish rate-hike as committee struggles to achieve the 2% target for inflation.

With that said, AUD/USD remains at risk of facing range-bound conditions over the near-term especially as the Reserve Bank of Australia (RBA) remains in no rush to lift the cash rate off of the record-low.

AUD/USD DAILY CHART

AUD/USD Daily Chart
  • AUD/USD may track the monthly range following the failed attempt to test the 0.7930 (50% retracement) to 0.7940 (61.8% retracement) region, with the pair at risk for a move back towards 0.7720 (23.6% retracement) to 0.7770 (61.8% expansion) as the bullish momentum abates.
  • Keeping a close eye on the Relative Strength Index (RSI) as it appears to be breaking trendline support; may see a bearish trigger unfold as a broader correction appears to be underway, with the next downside region of interest coming in around 0.7650 (38.2% retracement) followed by 0.7590 (100% expansion)

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!

DailyFX Calendar

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- 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