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
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • ECB President Lagarde: - Hope is still that 2021 is year of recovery - Euro-area growth in Q4 was negative - Recovery has been delayed but not derailed #ECB $EUR
  • #Gold fell back to around $1,850 after testing and rejecting its upper range for the last two weeks as it climbed to a morning high around $1,867. $XAU $GLD https://t.co/wPjAgcu3Vq
  • Game Stop's surge on the open seemed to knock on to TSLA with some throttling and on to FAANG members with further restraint while the Nadsdaq gapped 1.1% to the upside. NDX/SPX ratio hit a record but it all has started to ease off since the opening drive
  • Taking a look at the technicals, the outlook for EUR/GBP remains weak with last weeks brief break below key support at 0.8860 suggesting as much. Get your $GBP technical outlook from @JMcQueenFX here:https://t.co/ZQKI9t3NHt https://t.co/mOWhxiFFVE
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.12% 🇨🇦CAD: -0.05% 🇯🇵JPY: -0.08% 🇬🇧GBP: -0.18% 🇨🇭CHF: -0.42% 🇪🇺EUR: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/KCr9hz3m0O
  • Italy's Conte facing calls to step down from coalition allies - BBG. $EUR
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: 0.43% Wall Street: -0.29% FTSE 100: -0.51% France 40: -0.97% Germany 30: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/wDJmo5eYNU
  • Heads Up:💶 ECB President Lagarde Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-25
  • US Dollar strength is continuing this morning, with the $DXY rising from an open around 90.10 to an intraday high slightly above 90.50. $USD https://t.co/jzcv9L7CNy
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.04% Gold: -0.20% Silver: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/RkfNp3MQFJ
We See Key Reasons Why Japanese Yen Might Surge Further

We See Key Reasons Why Japanese Yen Might Surge Further

David Rodriguez, Head of Product

Summary: The Japanese Yen has surged versus the US Dollar, the Euro, and other major counterparts. But why might this be the move we’ve been waiting for?

- Japanese Yen is top-performer versus major forex counterparts in the past two days

- Our retail forex positioning data warns this might be the start of much larger move

- Senior Strategist Kristian Kerr highlights a key cycle turn window in USDJPY

Big moves in the Japanese Yen suggest this may be the start of the larger reversal we’ve watched for, and the next moves in the USDJPY and EURJPY in particular could set the tone for JPY trading through the foreseeable future.

US Dollar Trades below Potentially Pivotal Support versus Japanese Yen

forex_trading_Japanese_Yen_might_finally_start_larger_rally_body_Picture_5.png, We See Key Reasons Why Japanese Yen Might Surge Further

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez

Euro Trades at Similarly Pivotal Support versus the Resurgent Japanese Currency

forex_trading_Japanese_Yen_might_finally_start_larger_rally_body_Picture_6.png, We See Key Reasons Why Japanese Yen Might Surge Further

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez

One critical factor we discussed yesterday was a material shift in retail forex trading sentiment, and our data suggests that the tide may have turned for the EURJPY and other JPY pairs.

Forex Trading Crowds Now at Biggest EURJPY Long Position since Key Turns

forex_trading_Japanese_Yen_might_finally_start_larger_rally_body_Picture_7.png, We See Key Reasons Why Japanese Yen Might Surge Further

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez

What happens next could define Japanese Yen trends through the foreseeable future. And as a long-term JPY bear and US Dollar bull I argued that a USDJPY long position is my favorite trade of 2014. That remains true, but a substantial correction may in fact give me a better opportunity to get long at a lower price.

Indeed one factor very much worth noting is the fact that the recent Yen moves have coincided with a significant jump in volatility prices as seen through FX options markets.

Why is that significant? Put simply, it suggests that many derivatives traders are betting on and/or hedging against big currency moves in the days and weeks ahead.

Forex Volatility Prices Have Jumped as Traders Bet on/Hedge against Currency Moevs

forex_trading_Japanese_Yen_might_finally_start_larger_rally_body_Picture_8.png, We See Key Reasons Why Japanese Yen Might Surge Further

It will be critical to watch price action in the coming weeks as it could determine trends throughout the rest of the year. Follow any updates on the Japanese Yen and other currencies via this author’s e-mail distribution list.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.

Contact and follow David via Twitter: https://twitter.com/DRodriguezFX

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

DISCLOSURES