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
EUR/USD
Mixed
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
Oil - US Crude
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
Wall Street
Bearish
Gold
Mixed
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.35% 🇨🇭CHF: 0.32% 🇦🇺AUD: 0.28% 🇯🇵JPY: 0.13% 🇨🇦CAD: 0.09% 🇬🇧GBP: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/RXxjsCy8rA
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: -0.11% Oil - US Crude: -0.37% Silver: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Hc2TbgHQee
  • GBP/USD experienced some nice strength next week, and on that it kept forging the bullish channel building over the past month. Get your $GBPUSD technical analysis from @PaulRobinsonFX here:https://t.co/NIbRTVmjqq https://t.co/flxIsQmpld
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.80%, while traders in EUR/USD are at opposite extremes with 72.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vpBfv4QowY
  • US Equity Update (Friday Close): $DJI -0.10% $SPX +0.35% $NDX +0.25% $RUT +0.63% $VIX -2.38%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.39% FTSE 100: 0.34% Germany 30: 0.28% Wall Street: -0.03% US 500: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PJ6eqnizhK
  • Update on #Cryptocurrencies #BITCOIN -1.73% #BITCOINCASH -0.64% #ETHEREUM -2.40% #RIPPLE -3.39% #LITECOIN +1.68%
  • The Euro and European bourses finding some support this morning following this morning’s PMIs.Get your $EURUSD market update from @JMcQueenFX here:https://t.co/BR4OvkW5uO https://t.co/xLhhd9iqiI
  • New York Covid hospitalizations rise over 1,000 - highest since June - BBG
  • Johnson & Johnson Covid vaccine trial will resume shortly - The Washington Post
Yen Technical Forecast: USD/JPY & AUD/JPY Rates Diverging

Yen Technical Forecast: USD/JPY & AUD/JPY Rates Diverging

2020-09-26 19:05:00
Rich Dvorak, Analyst
Share:

JPY WEEKLY TECHNICAL FORECAST NEUTRAL AS DOLLAR-YEN & AUSSIE-YEN DIVERGE

  • Japanese Yen outlook turns neutral but still appears broadly constructive
  • USD/JPY price action ripped higher last week and could extend its advance
  • AUD/JPY faced aggressive selling pressure amid heightened market volatility

The Japanese Yen has appreciated sharply against top FX peers since the start of September. The move seems largely driven by an influx of risk aversion and heavy selling pressure across major stock indices. This abrupt downshift in trader sentiment put JPY price action back in favor seeing that the Yen is a top safe-haven currency that tends to rise during volatile market conditions.

JAPANESE YEN INDEX PRICE CHART: DAILY TIME FRAME (28 APR TO 25 SEP 2020)

Japanese Yen Index Price Chart JPY Technical Forecast

Chart created by @RichDvorakFX with TradingView

Looking at an equally-weighted Japanese Yen Index comprised of USD/JPY, AUD/JPY, EUR/JPY, GBP/JPY, and CAD/JPY shows that Yen strength has wanedmore recently. For example, the Yen gaining ground against the Australian Dollar while weakening against the US Dollar highlights mixed JPY price action last week.

Forex for Beginners
Forex for Beginners
Recommended by Rich Dvorak
Forex for Beginners
Get My Guide

USD/JPY PRICE CHART WITH AUD/JPY OVERLAID: 2-HOUR TIME FRAME (31 AUG TO 25 SEP 2020)

Yen Price Chart Forecast USDJPY AUDJPY

Chart created by @RichDvorakFX with TradingView

This caused the direction of USD/JPY and AUD/JPY to diverge from one another, which could continue going forward, particularly if volatility keeps spiking higher as markets swoon. That said, with month-end and quarter-end on deck this week, there is the potential risk that rebalancing flows unwind recent market activity.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Rich Dvorak
Trading Forex News: The Strategy
Get My Guide

USD/JPY PRICE CHART: DAILY TIME FRAME (25 JUN TO 25 SEP 2020)

USD JPY Price Chart Forecast US Dollar to Japanese Yen Technical Analysis

USD/JPY price action ripped higher last week as the broader US Dollar builds upon its bullish reversal off multi-year lows. Reclaiming the 106.00-price level might open up the door for USD/JPY to extend its advance toward August swing highs near the 107.00-handle. On that note, the latest MACD crossover suggests upward momentum is gaining traction. However, failing to eclipse the 50-day moving average could send the Dollar-Yen snapping lower for a re-test of technical support underpinned by the 30 July and 20 September lows.

USD/JPY MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -4% 5% -1%
Weekly 16% -26% -2%
What does it mean for price action?
Get My Guide

AUD/JPY PRICE CHART: DAILY TIME FRAME (03 JUN TO 25 SEP 2020)

AUD JPY Price Chart Australian Dollar to Japanese Yen Technical Analysis

The steep stumble set forth by the Aussie-Yen this month has erased about three-quarters of the 600-pip rally from June to August. AUD/JPY price action now gravitates around the 76.4% Fibonacci retracement level of the aforementioned bullish leg, which stands out a potential area of support. A relief bounce could materialize off this level, perhaps fueled by an improvement in underlying market sentiment, though selling pressure may resume if spot AUD/JPY nears the 75.500-price. Nevertheless, taking out last week’s low, likely accompanied by a deeper move into oversold territory as indicated by the relative strength index, could exacerbate AUD/JPY weakness and send spot prices plunging toward the mid-June swing lows.

AUD/JPY BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -13% -17% -15%
Weekly 21% -17% 1%
What does it mean for price action?
Get My Guide

Keep Reading - AUD/USD Price Outlook: Australian Dollar Drops to Fresh Two-Month Low

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES