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
  • Heads Up:🇮🇩 Inflation Rate YoY (JUL) due at 04:00 GMT (15min) Expected: 1.45% Previous: 1.33% https://www.dailyfx.com/economic-calendar#2021-08-02
  • (ASEAN Fundy) US Dollar Outlook: SGD, THB, IDR, PHP May Benefit on Slowing Covid Growth, Soft NFPs #USD #ASEAN $USDSGD $USDTHB $USDIDR $USDPHP https://www.dailyfx.com/forex/fundamental/article/special_report/2021/08/02/US-Dollar-Outlook-SGD-THB-IDR-PHP-May-Benefit-on-Slowing-Covid-Growth-Soft-NFPs.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/e5WczRhUl6
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/efGjwnJaKm
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.12% Silver: -0.30% Oil - US Crude: -1.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/b9pJgSOH8O
  • RT @Yeap_IG: #IGMorningthoughts: - 89% of #SP500 companies outperformed earnings thus far, but only 0.2% gain in SP500 since start of earni…
  • Gold prices risk forming a "Double Top" pattern - #GOLD chart https://t.co/pxGxpBTGPA
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇪🇺EUR: -0.05% 🇨🇭CHF: -0.10% 🇨🇦CAD: -0.14% 🇦🇺AUD: -0.17% 🇳🇿NZD: -0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/W36DdxonII
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.87%, while traders in Wall Street are at opposite extremes with 74.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RKCkZLF5Pw
  • Keppel Corp is seeking to buy Singapore Press Holdings (SPH) for S$2.2 billion following the spin-off of its media assets, and plans to delist and privatize the company - BBG
  • S&P 500 Futures Lift Nikkei 225, Regulatory Risks Hit Chinese Stocks https://www.dailyfx.com/forex/market_alert/2021/08/02/SP-500-Futures-Lift-Nikkei-225-Regulatory-Risks-Hit-Chinese-Stocks.html https://t.co/bBmLaL5aHB
USD/JPY Holds Steady, Fed Outlook Unchanged Going Into June

USD/JPY Holds Steady, Fed Outlook Unchanged Going Into June

David Song, Strategist

JAPANESE YEN TALKING POINTS

USD/JPY holds a narrow range even as the Trump Administration plans to impose tariffs on imported aluminum and steel from Canada, Mexico, and the European Union (EU), and the updates to the U.S. Non-Farm Payrolls (NFP) report may keep the exchange rate afloat as the economy is expected to add 190K jobs in May.

Image of daily change for major currencies

DOLLAR-YEN RATE HOLDS STEADY, FED OUTLOOK REMAINS UNCHANGED AHEAD OF U.S. NON-FARM PAYROLLS (NFP)

Image of daily change for USDJPY

Indications of full-employment may push the Federal Reserve to expand the hiking-cycle as price growth is expected to run above target over the coming months, and the central bank may adopt a more hawkish tone in the second-half of the year as it largely achieves the dual mandate for monetary policy.

However, signs of subdued wage growth may dampen the appeal of the greenback as Average Hourly Earnings are projected to hold steady at an annualized 2.6%, and the updates may do little to alter the monetary policy outlook as ‘market-based measures of inflation compensation remain low.’ With that said, the Federal Open Market Committee (FOMC) may increase its efforts to anchor expectations, and Chairman Jerome Powell and Co. may continue to project a longer-run neutral rate of 2.75% to 3.00% at the next quarterly meeting in June as ‘inflation on a 12-month basis is expected to run near the Committee's symmetric 2 percent objective over the medium term.

Image of Fed Fund Futures

In response, Fed Fund Futures may continue to highlight narrowing bets for four rate-hikes in 2018, with USD/JPY still at risk of facing a larger decline as both price and the Relative Strength Index (RSI) snap the bullish formations from earlier this year.

USD/JPY DAILY CHART

Image of USDJPY daily chart
  • USD/JPY remains at risk for further losses as it continues to carve a series of lower highs, but need a break/close the 108.30 (61.8% retracement) to 108.40 (100% expansion) region to open up the next hurdle around 106.70 (38.2% retracement) to 107.20 (61.8% retracement).
  • Next region of interest comes in around 105.40 (50% retracement) followed by the Fibonacci overlap around 104.10 (78.6% retracement) to 104.20 (61.8% retracement), which sits just beneath the 2018-low (104.63).

For more in-depth analysis, check out theQ2 Forecast for the Japanese Yen

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!

Image of DailyFX economic 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

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES