Skip to Content
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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Asia AM Digest: USD Continues Higher, Yen Falls as Nikkei 225 Rises

Asia AM Digest: USD Continues Higher, Yen Falls as Nikkei 225 Rises

Research, Research Team


To get the Asia AM Digest every day, SIGN UP HERE

The US Dollar rose about 1 percent on Wednesday, putting in its largest daily gain in more than five months. Greenback’s push higher was accompanied with rising local front-end government bond yields. This hinted at firming hawkish Fed monetary policy expectations.

Meanwhile the anti-risk Japanese Yen was one of the worst performing currencies. It spent most of the day declining as the Nikkei 225 rose in after-hours trade. News that North Korea wants to hold a summit talk with Japan probably inspired some confidence towards the end of the day. Sentiment linked currencies like the Australian Dollar outperformed.

The Canadian Dollar was also a strong performer thanks to some political developments. US Trade Representative Robert Lighthizer said that he is hopeful and optimistic of a new NAFTA deal in the near-term.

DailyFX Economic Calendar: Asia Pacific (all times in GMT)

DailyFX Webinar CalendarCLICK HERE to register (all times in GMT)

IG Client Sentiment Index Chart of the Day: USD/JPY

CLICK HERE to learn more about the IG Client Sentiment Index

Retail trader data shows 64.4% of USD/JPY traders are net-long with the ratio of traders long to short at 1.81 to 1. In fact, traders have remained net-long since Dec 29 when USD/JPY traded near 113.533; price has moved 6.3% lower since then. The percentage of traders net-long is now its lowest since Feb 18 when USD/JPY traded near 106.259. The number of traders net-long is 8.6% lower than yesterday and 14.7% lower from last week, while the number of traders net-short is 14.7% higher than yesterday and 25.4% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/JPY prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/JPY price trend may soon reverse higher despite the fact traders remain net-long.

Five Things Traders are Reading:

  1. S&P 500 Traders Are Evenly Positioned According to Client Sentiment by Dylan Jusino, DailyFX Research
  2. GBP/USD: Cable Chaos Ahead of Quarter-End, Trend Remains Bullish by James Stanley, Currency Strategist
  3. EUR/USD Uptrend Remains Viable If Price Can Hold Above these Levels by Michael Boutros, Currency Strategist
  4. Bitcoin, Ripple, Litecoin - Charts and Prices | Webinar by Nick Cawley, Analyst
  5. US Dollar Grasps on to Gains as Pressure Continues to Build in the S&P by James Stanley, Currency Strategist

To get the Asia AM Digest every day, sign up here

To get the US AM Digest every day, sign up here

To get both reports daily, sign up here

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