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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here:
  • 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:
  • 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:
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here:
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here:
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today:
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here:
USD/JPY Technical Analysis: Upside Risks Heightened Before BoJ (Levels)

USD/JPY Technical Analysis: Upside Risks Heightened Before BoJ (Levels)

Tyler Yell, CMT, Currency Strategist

Interested In Our Analyst’s Longer-Term Yen Outlook? Be Sure To Sign Up For Our Free Yen Guide Here.

Talking Points:

  • USD/JPY Technical Strategy: Awaiting Decision from BoJ, Charts Favor Downside
  • 38.2% Fibo of Dec-Jan Range Remains Resistance Ahead of BoJ
  • JPY Clearly Strongest Currency in 2016 That Should not be sold, unless BoJ Forces It

Stocks selling off after the Federal Reserve rate decision on January 27 helps to show the relief that had reliably come from the Fed may be gone for now. While this is rather supportive for the US Dollar as a whole, USD/JPY is in a unique scenario that does not favor buying the US Dollar. Instead, it is best to keep an eye on equities via the JPN225 or Japanese Nikkei or the SPX500 to get a sense for the likely direction of risk or the Bank of Japan’s intention to further expand QQE.

ST Bearish USDJPY Set-Up Developing

USD/JPY Technical Analysis: Upside Risks Heightened Before BoJ (Levels)

Because USDJPY is strongly correlated to risk sentiment, the direction of broader markets will likely determine the overall direction of USDJPY. If equities move sideways or drop through key supports, the risk remains for risk-sentiment to pull USDJPY convincingly through the longer-term head & shoulders neckline to lower levels.

The chart above shows an effective price channel in red that is drawn off key pivots in December that have done a fair job of framing price action since. We are now at an inflection point on the chart as the 38.2% Fibonacci level of the December and January price range aligns with the channel resistance. Now, ahead of the BoJ, we will see whether 117.645, the opening range low for the week, can hold the price up and if not, a breakdown in price to new channel lows targeting 115 is in focus.

With the Bank of Japan, announcing their latest decision on Monetary Policy on January 29 could erase the downside if they announce new measures of easing, which would turn attention surprisingly to new highs beyond the 2015 high of 125.85. New highs would be favored because the strong dollar would remain in focus as long as the Fed keeps a focus on higher interest rates, and a weaker Yen would be favored if the Bank of Japan increases their stimulus. If they do not, the trend lower should not be fought.


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