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
USD/JPY Rate Catches Bid Ahead of Fed Rhetoric, Policy Meeting Minutes

USD/JPY Rate Catches Bid Ahead of Fed Rhetoric, Policy Meeting Minutes

David Song, Strategist

Japanese Yen Talking Points

USD/JPY appears to be catching a bid as Federal Reserve officials are scheduled to speak ahead of the Group of 20 (G20) Summit, and a slew of hawkish comments may keep the exchange rate afloat as it snaps the recent series of lower highs & lows.

Image of daily change for major currencies

USD/JPY Rate Catches Bid Ahead of Fed Rhetoric, Policy Meeting Minutes

Image of daily change for usdjpy rate

The fresh batch of Fed rhetoric may influence the near-term outlook for USD/JPY as Vice-Chairman Richard Clarida and Chairman Jerome Powell are both scheduled to speak ahead of the Federal Open Market Committee (FOMC) Minutes due out on November 29, and it seems as though the central bank will continue to convey a hawkish forward-guidance for monetary policy as ‘members expected that further gradual increases in the target range for the federal funds rate would be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term.

Image of fed fund futures

With Fed Fund Futures still highlighting bets for a 25bp rate-hike in December, market participants may put increased emphasis on the ongoing discussion of pushing the benchmark interest rate temporarily above neutral as ‘several participants reported that firms in their Districts that were facing higher input prices because of tariffs perceived that they had an increased ability to raise the prices of their products.’

Indications for an extended Fed hiking-cycle may generate another run at the 2018-high (114.55) as the central bank warns of higher inflation on the back of rising tariffs, with the deviating paths for monetary policy casting a long-term bullish outlook for USD/JPY as Bank of Japan (BoJ) remains reluctant to move away from the Quantitative/Qualitative Easing (QQE) Program with Yield-Curve Control.

However, it remains to be seen if the scheduled speeches along with the FOMC Minutes will prepare U.S. households and businesses for above-neutral interest rates as ‘risks to the economic outlook appear roughly balanced,’ and more of the same from Chairman Powell & Co. may rattle the advance from the November-low (112.31) as the Fed tames bets for above-neutral interest rates.

With that said, failure to preserve the monthly opening range leaves USD/JPY vulnerable to tracking the October range, but a batch of hawkish comments from Fed officials may keep the exchange rate afloat as it boosts bets for an extended hiking-cycle. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

USD/JPY Daily Chart

Image of usdjpy daily chart
  • Keep in mind, the near-term outlook for USD/JPY remains capped by the 113.80 (23.6% expansion) to 114.30 (23.6% retracement) region, with the failed attempts to close below the 112.40 (61.8% retracement) to 113.00 (38.2% expansion) area raising the risk for range-bound conditions.
  • Keeping a close eye on the Relative Strength Index (RSI) as it highlights a similar dynamic, with the oscillator holding a near-term holding pattern as it comes off of trendline support.
  • In turn, need a break of the monthly-high (114.23) to open up the 2018-high (114.55), with the next topside region of interest comes in around 115.10 (61.8% expansion).

For more in-depth analysis, check out the Q4 Forecast for the Japanese Yen

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