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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • Heads Up:🇨🇦 CAD Housing Starts (NOV) due at 13:15 GMT (15min), Actual: N/A Expected: 215.0k Previous: 202.0k https://www.dailyfx.com/economic-calendar#2019-12-09
  • Iran's next year budget eyes oil prices at $50/bbl, according to an official on shana
  • LIVE NOW: Join Senior Currency Strategist @CVecchioFX as he reviews key event risk in the week ahead and help strategize how to approach FX markets. Register here: https://www.dailyfx.com/webinars/390818203?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Join @MBForex 's at 8:30 AM ET/1:30 PM GMT for his weekly #scalping #webinar Register here: https://t.co/VAnAfZU02T https://t.co/EVKjMNdJ6M
  • Libya's NOC has declared a force majeure on Mellitah crude loading, according to Reuters
  • LIVE IN 30 MIN: Join Senior Currency Strategist @CVecchioFX as he reviews key event risk in the week ahead and help strategize how to approach FX markets. Register here: https://www.dailyfx.com/webinars/390818203?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.90%, while traders in US 500 are at opposite extremes with 77.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BZpmb8E27U
  • LIVE NOW: Join Analyst @nickcawley1 as he discusses the outlook for UK financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/614330707?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Tune in to @CVecchioFX 's #webinar at 7:30 AM ET/12:30 AM GMT to prepare for major event risk in the week ahead. Register here: https://t.co/QscMCDP1ud https://t.co/KJpPdsyeGn
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.22% Gold: 0.22% Oil - US Crude: -0.89% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/64XxgDkWYe
Japanese Yen Benefits From Risk Aversion, British Pound Extends Decline

Japanese Yen Benefits From Risk Aversion, British Pound Extends Decline

2010-03-09 16:21:00
David Song, Currency Strategist
Share:

03.09_DWL1

The Japanese Yen strengthened across the board as investors scaled back their appetite for risk, and is the best performing currency against the greenback on Tuesday, with the exchange rate slipping to a low of 89.63. The USD/JPY has bounced back during the North American trade and remains 40pips lower on the day after moving 78% of its average true range, and the pair looks poised to cross back above the 120-SMA at 90.04 going into the Asian session as the 30-minute RSI rebounds from oversold territory. However, as the USD/JPY maintains the downtrend from the 2007 high (124.13), we are likely to see price action hold below the 200-Day SMA at 91.94, but a shift in risk trend could lead to a major breakout in the pair as the global recovery gathers momentum.

03.09_DWL2


03.09_DWL3

The British Pound extended the decline from earlier this week and slipped to a low of 1.4937 as Fitch Ratings held a cautious outlook for the U.K., and the exchange rate may continue to trend lower going into the Asian trade as the U.S. dollar continues to benefit from the rise in safe-haven flows. The GBP/USD is 80pips lower from the open after moving 78% of its daily ATR, but it appears there is a short-term correction in the exchange rate as the 30-minute relative strength index climbs out of oversold territory following the rebound from the daily low. Nevertheless, as the daily RSI maintains the downward trend initiated from January, the bearish momentum could lead the pair to test the yearly low at 1.4782 as policy makers continue to see a risk for a protracted recovery. At the same time, the Bank of England minutes due out next week are likely to spark increased volatility in the British Pound cross rates as investors weigh the prospects for future policy, and we may see the exchange rate hold a narrow range throughout the week as market participants speculate the central bank to maintain a dovish outlook for inflation.

03.09_DWL4

Join us to discuss the outlook for the major currencies on the DailyFX Forums

To discuss this report contact David Song, Currency Analyst: instructor@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.