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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
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
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.89% Silver: -0.79% Gold: -0.90% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/s6gSdtSyzk
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.17% 🇨🇦CAD: 0.16% 🇦🇺AUD: -0.05% 🇳🇿NZD: -0.11% 🇨🇭CHF: -0.17% 🇯🇵JPY: -0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/gbOKCTOkIE
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/LLkrZwdTae
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.90% FTSE 100: 0.80% France 40: 0.76% Wall Street: 0.67% US 500: 0.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/GbHvaz35ZV
  • ECB's Weidmann says the ECB can flexibly adjust PEPP purchase pace $EUR
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/o8wSmAUaQM
  • Bundesbank says German HICP will exceed 3% by year-end but only temporarily
  • Briefly lifting Euro above 1.21 https://t.co/oROMtbKqjT
  • ECB see no need for drastic action to curb bond yields $EUR
  • 🇬🇧 Markit/CIPS Composite PMI Final (FEB) Actual: 49.6 Expected: 49.8 Previous: 41.2 https://www.dailyfx.com/economic-calendar#2021-03-03
Japanese Yen Technical Analysis: USD/JPY Fall Halts Above Key Low

Japanese Yen Technical Analysis: USD/JPY Fall Halts Above Key Low

David Cottle, Analyst

Talking Points:

  • USD/JPY’s downtrend clearly endures
  • However, there are signs that an attempt at base building could be under way
  • Trade in the immediate aftermath of this week’s Federal Reserve policy call could be very illuminating

Where does the Japanese Yen stand in the affections of retail foreign-exchange traders. Find out at the DailyFX Sentiment Page.

The Japanese Yen remains clearly in the ascendant against the US Dollar but there are tentative signs that the breaks are being put on.

Fundamentally an environment of general Dollar weakness is being challenged by rising US bond yields. The growing realization that, while many developed-market central banks will probably tighten monetary policy as their next move, the Federal Reserve remains the most aggressive player on this field by far also seems to be spreading.

For USD/JPY this has not yet meant any break in the steep downtrend channel on the daily chart which has endured since January 8. And it is worth noting at this point that that downtrend was only an acceleration of the more meandering slide already in place since November 6.

Japanese Yen Technical Analysis: USD/JPY Fall Halts Above Key Low

The downtrend has paused this week, in the 108.80 area, which is just above the support area formed by the intraday and closing lows of the last very significant low which was made on September 7. Now of course while the downtrend channel endures, a test of those lows is inevitable. And USD/JPY bears could merely be taking some time out until they’ve heard from the US Federal Reserve. Chair Janet Yellen will give her last monetary decision at the helm later on Wednesday and, while no alterations are expected, she is tipped to leave the door wide open to a March interest-rate rise.

Once that is out of the way, whether USD/JPY can indeed build any sort of base around current levels will be the week’s pressing question. If it can, then US Dollar bulls can dare to dream of a way out of the prevailing downtrend, although for the moment that looks like a very big ask.

Japanese Yen Technical Analysis: USD/JPY Fall Halts Above Key Low

If base building fails, then those September lows in the 107 area will be back in focus.

Meanwhile the Australian Dollar is looking a little heavy against the Yen now. The Aussie has enjoyed a stellar run against the US Dollar for the last couple of months, with its steep gains inevitably leading to strength elsewhere, and notably against the Yen. However, AUD/JPY has twice failed to top the 89.08 level this month, despite two valiant bullish attempts on it.

This must now be regarded as a double top cap for the cross, which in turn puts focus on the current range base at 87.17.

Japanese Yen Technical Analysis: USD/JPY Fall Halts Above Key Low

--- 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