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
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
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
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
USD/JPY
Mixed
More View more
Real Time News
  • Going live shortly at the link below! Talking inflation, the Fed and what it all means for the $SPX and $NDX and $GLD https://t.co/E2HHhB5GWD
  • The Dollar's rebound following the CPI release is re-forming the 'right shoulder' on the $AUDUSD's Head-and-Shoulders pattern that has been developing throughout 2021. Run up started with the Mar 19, 2020 reversal low, so a lot to correct if 0.7550 eventually gives https://t.co/NrAU370cwl
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.06% 🇬🇧GBP: -0.35% 🇨🇭CHF: -0.59% 🇯🇵JPY: -0.71% 🇦🇺AUD: -1.22% 🇳🇿NZD: -1.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/SqTzV7xT3f
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 1.18% Germany 30: 0.72% France 40: 0.64% Wall Street: -0.84% US 500: -1.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/t2cIOfCEmP
  • Hey traders! The top story is US inflation figures. What other data are we banking on? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/5g8GYPuFks
  • US Dollar bulls send the broader DXY Index sharply higher following red-hot inflation data. Get your market update from @RichDvorakFX here:https://t.co/27CGGOsTxh https://t.co/3uERS5kICD
  • Hey traders! The Top story is US inflation figures. What other data are we banking on? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/ziropKKK2E
  • I don't envy the Fed officials today. These headline and core CPI figures are going to be distressing. Maintaining the 'inflation is transitory' view is the central bank equivalency of HODL or diamond hands https://t.co/jm99h6f89u
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.70% Gold: -0.39% Silver: -0.77% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/bkkaIuBhqz
  • Ten-Year US Treasury yields breaking out above 165-basis points following notably hotter-than-expected inflation data this morning. Headline and core CPI both topped market forecast with readings of 4.2% and 3.0%, respectively. I previewed this scenario yesterday on @tradingview. https://t.co/Fgc0RZe2nw https://t.co/VHmkcuJm9p
USD/JPY Chops in Corrective Fashion; Eyes BOJ Next Week

USD/JPY Chops in Corrective Fashion; Eyes BOJ Next Week

Jeremy Wagner, CEWA-M, Head of Education

Talking Points

-BOJ releases monetary statement July 29, traders anticipate stimulus or talk of helicopter money

-Technical structure appears bullish medium term, a break above 107.50 is significant

-If the correction lower continues, support may be found near 104.63, 103.90 or 103.50

Traders are talking about potential helicopter money flying over Japan. Though we don’t know if that will happen, mere talks about it has placed USD/JPY on trader’s radars.

BOJ meets at the end of next week and there is an anticipation of more stimulus arriving out of Japan. Should helicopter money (or other stimulus) be disbursed, it could potentially weaken the Yen and USD/JPY may take flight.

From a technical perspective, the picture is simple. It appears the pair is building a bullish pattern that could lead to much higher prices.

We wrote in our previous article how there is a cluster of resistance in the 106.30-107.30 price zone. If prices were successful in breaking higher and holding, this would be a significant technical development.

USD/JPY Chops in Corrective Fashion; Eyes BOJ Next Week

Using Elliott Wave analysis, it appears we have 5 waves higher and prices are correcting sideways to lower in 3 waves. This is a bullish sequence that often pre-empts another 5 waves higher of similar size and magnitude as we saw with the July 8 to July 14 increase.

Therefore, a break above the July 20 high of 107.50 could signal a continuation of the uptrend and that the correction is over.

We do think there is a higher probability chance of a move to slightly lower levels. If the correction is still in place, then the wave ‘a’ low of 104.63 is a potential target. Additionally, the 38.2% retracement level of 103.90 is another target. Lastly, we wouldn’t be surprised to see USD/JPY possibly trade down to 103.50. This last zone represents the distance of the ‘b’ wave overshoot in excess of wave ‘v’ and displaces it as a overshoot of the ‘a’ wave low.

How do we know which level is likely to hold?

Though we don’t know if the 107.50 level to the topside or 104.63, 103.90, and 103.50 to the downside will hold, we can use the Grid Sight Indicator to provide an indication of intraday momentum as price presses into one of these levels.

GSI is a big data indicator that compares the current price action to historical patterns and seeks out any matches. Based on those matches it sill share how many of the historical patterns moved higher ‘x’ pips and how many moved lower ‘y’ pips.

In the end, you can see if similar historic patterns produced support or resistance and use that in conjunction with your other analytical tools.

Learn more about GSI or use GSI on USDJPY ‘m3’ or ‘m5’ here.

Bottom line, if medium term technical pattern looks bullish up towards 111-115.

Having trouble trading USD/JPY? This may be why.

Interested in a quarterly outlook for USD and/or JPY? Download our quarterly forecast here.

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU

Follow me on Twitter at @JWagnerFXTrader .

See Jeremy’s recent articles at his Bio Page.

To receive additional articles from Jeremy via email, join Jeremy’s distribution list.

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

DISCLOSURES