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
Wall Street
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
  • 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/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
USD/JPY Strength Fizzles as Fed Chairman Powell Softens Hawkish Tone

USD/JPY Strength Fizzles as Fed Chairman Powell Softens Hawkish Tone

David Song, Strategist

Japanese Yen Talking Points

USD/JPY quickly pulls back from a fresh weekly-high (114.04) as Federal Reserve Chairman Jerome Powellwarns that the benchmark interest rate is ‘just below the broad range of estimates of the level that would be neutral for the economy,’ and the exchange rate may continue to consolidate over the remainder of the month as it marks another failed attempt to test the 2018-high (114.55).

Image of daily change for major currencies

USD/JPY Strength Fizzles as Fed Chairman Powell Softens Hawkish Tone

Image of daily change for usdjpy rate

Chairman Powell appears to be adopting a less-hawkish tone ahead of 2019 as ‘sustained declines in equity prices can put downward pressure on spending and confidence,’ and the comments infer that the Federal Open Market Committee (FOMC) is nearing the end of the hiking-cycle as the central bank head notes that ‘the economic effects of our gradual rate increases are uncertain.’

With that said, updates to the core Personal Consumption Expenditure (PCE) may also produce headwinds for the U.S. dollar as the Fed’s preferred gauge for inflation is expected to narrow to 1.9% from 2.0% per annum in September, and signs of limited price pressures may encourage the FOMC to revert back to a wait-and-see approach as future ‘decisions on monetary policy will be designed to keep the economy on track in light of the changing outlook for jobs and inflation.

Image of fed interest  rate forecast

Keep in mind, it seems as though the FOMC is on course to deliver another 25bp rate-hike in December as officials ‘are forecasting continued solid growth, low unemployment, and inflation near 2 percent,’ and Chairman Powell & Co. may continue to project a longer-run interest rate of 2.75% to 3.00% as ‘the economy is growing at an annual rate of about 3 percent, well above most estimates of its longer-run trend.

With that said, USD/JPY may ultimately track the October range as it stages another failed attempt to test the 2018-high (114.55), with the Relative Strength Index (RSI) highlighting a similar dynamic as the oscillator consolidates within a triangle/wedge formation. 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
  • The recent series of higher highs & lows in USD/JPY may spur a run at the 2018-high (114.55), but the near-term outlook remains capped amid the lack of momentum to break/close above the 113.80 (23.6% expansion) to 114.30 (23.6% retracement) region.
  • In turn, the October range is in focus, with a break/close below the 112.40 (61.8% retracement) to 113.00 (38.2% expansion) area raising the risk for a move towards the Fibonacci overlap around 111.10 (61.8% expansion) to 111.80 (23.6% 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