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
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
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
Dollar-Yen Rate Snaps Bullish Sequence Ahead of May-High

Dollar-Yen Rate Snaps Bullish Sequence Ahead of May-High

David Song, Strategist

JAPANESE YEN TALKING POINTS

USD/JPY struggles to hold its ground going into the end of the week, with U.S. Treasury Yields highlighting a similar dynamic, and the dollar-yen exchange rate may continue to consolidate ahead of the Federal Open Market Committee (FOMC) interest rate decision on June 13 as it snaps the bullish series carried over from the previous week.

Image of daily change for major currencies

Dollar-Yen Rate Snaps Bullish Sequence Ahead of May-High

Image of daily change for USDJPY

With the Bank of Japan (BoJ) in no rush to wind down its Quantitative/Qualitative Easing (QQE) Program with Yield-Curve Control, the Fed’s normalization cycle may continue to influence USD/JPY over the remainder of the year as the central bank pledges to further normalize monetary policy over the coming months.

Expectations for higher U.S. interest rates should underpin the greenback as the FOMC remains on track to carry its hiking-cycle into 2019, and the committee may continue to prepare U.S. households and businesses for higher borrowing-costs as the economy nears full-employment, while inflation runs above the 2% target.

Image of Fed interest rate dot plot

However, little to no changes in the longer-run interest rate forecast (dot-plot) may spark headwinds for the U.S. dollar as market participants scale back bets for four rate-hikes in 2018, with USD/JPY at risk of exhibiting a more bearish behavior over the near-term especially as both price and the Relative Strength Index (RSI) fail to preserve the bullish formations from earlier this year.

USD/JPY DAILY CHART

Image of USDJPY daily chart
  • Monthly opening range remains in focus for USD/JPY as the pair appears to have marked a failed attempt to test the May-high (111.40), and the dollar-yen exchange rate may continue to give back the rebound from the previous week as it snaps the recent series higher highs & lows.
  • Close below the 109.40 (50% retracement) to 110.00 (78.6% expansion) region raises the risk for a move back towards 108.30 (61.8% retracement) to 108.40 (100% expansion), with the next downside region of interest comes in around 106.70 (38.2% retracement) to 107.20 (61.8% retracement).

For more in-depth analysis, check out the Q2 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