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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
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
Gold
Mixed
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
USD/JPY
Bullish
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
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/453MLny2lu
  • The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks. Get your market update from @ddubrovskyFX here: https://t.co/BickxlcuZi https://t.co/OdARp4Z1mh
  • The Dow Jones and Nasdaq 100 look to be on diverging technical paths as volatility spikes. Meanwhile, the S&P 500 teeters on support as it splits the difference between its sister indices. Get your market update from @PeterHanksFX here: https://t.co/0gULgIN2kw https://t.co/dzuxyjkXmx
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/yTYG7ote3R
  • The reflation trade is helping to push the oil-linked Canadian Dollar higher as the post-Covid economic outlook clears. The Loonie is reliant on the global economy’s recovery. Get your market update from @FxWestwater here: https://t.co/CYUiH0PCca https://t.co/my6clW7pxY
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/q8Ds7wYrKA
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/qtAmyhFU9A
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
Yen Sinks as BOJ Frets Strength But The Move May Be Overdone

Yen Sinks as BOJ Frets Strength But The Move May Be Overdone

David Cottle, Analyst

Talking Points:

  • The Bank of Japan worried about the effects of Yen strength on capex and consumption
  • Japanese trade data scored an export miss
  • The Yen sank on one or both, but the reaction seems a little strong

Find out just what makes the best traders stand out from the rest with DailyFX in-depth study of the Traits of Successful Traders

The Japanese Yen was hit Monday after data showing a much weaker trade surplus than expected and, probably more pointedly, some worrying about currency strength from the Bank of Japan.

The BoJ’s ‘Summary of Opinions’ from the previous monetary policy meeting on March 8 and 9 pointed to modest, balanced expansion in the Japanese economy – no argument there – but also to persistently weak wages and inflation which, while rising, remains some way below target.

The BoJ said that “there is no change in the judgement that it is necessary to continue pursuing powerful monetary easing with persistence so that highly accommodative financial conditions are maintained.”

All up this seems yet another rebuttal to the view of some in the market that Japan could see policy tighten before inflation gets to the 2% target level. The BoJ also said that inflation momentum is not strong enough for that target to be achieved anytime soon and, perhaps crucially, that if Yen appreciation and stock declines are prolonged then capital spending and consumption could be more restrained.

This overt worrying about the Yen’s strength may be what saw USD/JPY climb after the release. Be aware however that there is nothing especially new or surprising here and that the immediate market reaction could be a little overdone.

Yen Sinks as BOJ Frets Strength But The Move May Be Overdone

Released simultaneously, February’s trade surplus probably didn’t help Yen bulls’ cause. It came in at JPY34.0 billion (US$320 million). The markets had hoped for JPY89.1 billion, but may have got ahead of themselves given the all-too-likely trade distortions which often stem from the long Chinese Lunar New Year break.

Exports rose by a modest 1.8% on the year, while imports soared by 15.5%.

The Japanese Yen remains in the clear ascendant against the US Dollar on the USD/JPY daily chart, where the long downtrend from the highs of early January remains very much in place.

However, that downtrend has faced a hiatus since mid-February, with broad range trade seen since between 107.31 and 105.21. That range has just seen another failed upside test, and is admittedly looking less and less like a platform from which US Dollar bulls can stage a meaningful turnaround.

Yen Sinks as BOJ Frets Strength But The Move May Be Overdone

By the same token there is little to suggest that the range won’t also be respected to the downside, if tested so for the moment it’s probably still all traders have to play with.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you.

Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES