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
Bullish
Wall Street
Bearish
Gold
Bearish
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
More View more
Real Time News
  • 🇮🇩 Inflation Rate YoY (FEB) Actual: 1.38% Expected: 1.38% Previous: 1.55% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇮🇩 Inflation Rate YoY (FEB) due at 04:00 GMT (15min) Expected: 1.38% Previous: 1.55% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.75% Gold: 0.92% Silver: 0.65% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/SDuwP1gB7E
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.72% 🇳🇿NZD: 0.65% 🇬🇧GBP: 0.49% 🇪🇺EUR: 0.12% 🇨🇭CHF: 0.05% 🇯🇵JPY: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/maFKPUDES5
  • Dramatic-looking Bearish Engulfing candle pattern with negative RSI divergence on the weekly #AUDUSD chart. A turn may be brewing. https://t.co/25jfu7eHaB
  • 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/nAa0fHHGbZ https://t.co/2Xfmpbd24B
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.78%, while traders in GBP/JPY are at opposite extremes with 66.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/pXjqRmdicy
  • Australian Dollar Unfazed by Chinese PMI as RBA Meeting Shifts Into View - https://www.dailyfx.com/forex/market_alert/2021/03/01/Australian-Dollar-Unfazed-by-Chinese-PMI-as-RBA-Meeting-Shifts-Into-View.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $AUD $AUDUSD https://t.co/mR4b8YAVIe
  • 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/k2YkjBeSdW
  • RT @FxWestwater: Australian Dollar, APAC Markets Focus on Bond Yields to Start March Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/03/01/Australian-Dollar-APAC-Markets-Focus-on-Bond-Yields-to-Start-March.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $AUDUSD https://t.co/py…
Japanese Yen Technical Analysis: Pennant Backs Up USD/JPY Weakness

Japanese Yen Technical Analysis: Pennant Backs Up USD/JPY Weakness

David Cottle, Analyst

Talking Points:

  • USD/JPY has slipped on suspicions that the Bank of Japan may be changing heart
  • However, suspicions these remain for the moment
  • The charts, however suggest there could be further falls

Is there really a secret ingredient? Take a look at the DailyFX deep, deep dive into the Traits of Successful Traders

The Japanese Yen has found a little fundamental strength to take it into 2018, with USD/JPY sliding for a couple of days.

The apparent reason for this is a little esoteric. The Bank of Japan scaled back very modestly its regular bond buying purchases on Monday. Some in the market clearly chose to interpret as a sort of covert policy tightening, or a signal thereof, even if it need necessarily be no such thing.

Publicly the Bank of Japan remains committed to all its stimulus measures –which includes buying an annual JPY80 trillion (US$720 billion) from the market- until inflation rises sustainably, something it shows little sign of doing.

Whatever is actually happening, the Yen has caught a bid. But what do the charts suggest?

Well, the USD/JPY daily candlestick may be offering the move some support. What we could see here is a consolidative, pennant formation. If so, the likelihood is that the impulse which preceded the formation will resume once it plays out. As we can see from the chart below that may well mean that USD/JPY continues to fall. The move just before the pennant started was its slide from the highs of November 6, in the 114.65 region.

Japanese Yen Technical Analysis: Pennant Backs Up USD/JPY Weakness

One caveat might be that the pennant’s lower-bound-uptrend lacks validation points. That is a fair argument, should you care to make it but, all the same, I think the formation bears watching.

As far as possible support levels go, USD/JPY has already breached the first Fibonacci retracement of its rise from the lows of September 7 to the high of November 6. It did that when it fell through 112.98. The next retracement level lurks at 111.90 or so. It seems likely that the pennant will have resolved itself and proved a reasonably successful indicator should that level be hit though.

The newly invigorated Yen is gaining against a range of majors, with AUD/JPY no exception.

Japanese Yen Technical Analysis: Pennant Backs Up USD/JPY Weakness

In the last couple of days that cross has broken below a significant and quite emphatic upward channel which had been in place since December 7. However, the Australian Dollar bowed out of the old year doing well against a plethora of currencies, and notably the US Dollar. A consolidative pause was arguably overdue and may now be with us. If the Yen continues to gain against the US Dollar then it may also be set fairer against the Aussie, but it may be wise to see how AUD/JPY deals with retracement support at 0.8738 before worrying about a deeper fall.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

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

DISCLOSURES