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
Mixed
Wall Street
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
Gold
Bearish
GBP/USD
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
USD/JPY
Bullish
More View more
Real Time News
  • Fed Chair Powell: -Talk of tapering asset purchases is premature -Just too early to be talking about dates on tapering bond buying plans -Tapering would be gradual when we do it -Whole focus on exit is premature $SPX $NDX $DJI $USD $DXY $XAUUSD $TNX
  • Fed Chair Powell: -Pandemic, new virus strains still provide considerable downside risks -Will take quite a while to get to herd immunity -Vaccine rollout likely to be a struggle -Nothing more important to economy now than vaccinations
  • Fed Chair Powell: -Coming months' rise in inflation will be transient -We will be patient and not react when we see modest bumps in inflation -Very unlikely that we'll see troubling inflation -Not going to adopt a formula on inflation
  • Fed Chair Powell: -Financial vulnerabilities are 'moderate' right now overall -Asset prices have recently been driven by vaccines, fiscal steps -Link between interest rates and asset prices not so strong
  • Fed Chair Powell: -Fiscal response to economic downturn has been strong and sustained -We are a long way away from 'returning to normal' with about 9 million Americans still unemployed -The real unemployment rate is closer to 10% -Very appropriate to be highly accommodative
  • Fed Chair Powell: -Declines to comment when asked about recent $GME stock price activity, notes financial conditions are monitored very broadly -Carefully examining aspects of non-bank sector #Stocks #StockMarket #FOMC
  • We live in remarkable times.. https://t.co/PV9XZd4nXW
  • Fed Chair Powell: -Important to maintain anchored inflation expectations -Policy to remain accommodative until goals are reached -Economy is far away from jobs and inflation goals -Likely to take 'some time' before substantial progress $XAUUSD $GC_F $GLD
  • First question of the presser on Gamestop! Good job @jeannasmialek
  • US Dollar Index extends gains as equities continue to sell off $DXY $USD https://t.co/AEZSfrnyqt
USD/JPY Technical Analysis: USD/JPY Catapults to 200-DMA Resistance

USD/JPY Technical Analysis: USD/JPY Catapults to 200-DMA Resistance

Tyler Yell, CMT, Currency Strategist

Talking Points:

  • USD/JPY Technical Strategy: move through 200-DMA likely signals strong follow-through
  • U.S. 10-Year Treasury yield had largest intraday move on Wednesday
  • Gold Reversal Shows Dumping Of Haven Assets

USD/JPY has become a focal post-election trade alongside EUR/USD and XAU/USD. All of these markets have been correlated over the last year as a weak USD has a significant impact on all three markets. We noted yesterday, and earlier this week in our webinars that options exposure that was likely triggered on the victory of President-Elect Trump. However, these executed trades were quickly reversed.

Access Our Free Q4 Trading Guides That Focus On Tradeable Themes Here

On my post-election webinar,we discussed how similar the move in style though not the magnitude of the SNB de-pegging of EUR/CHF on January 15, 2015. In short, you had a massive move down in the USD vs. the CHF that then become almost immediately reversed. In those scenarios, no-one really wins during the volatility, but the rejection of one directional move helps to explain the undertones and trends in the market that are worth following.

USD/JPY has had multiple rejections of 99/101 zone, which may be indicative of either intervention from Japan to sell the JPY or unwillingness for institutions to hold long JPY positions against the USD below 101. Either way, we have seen a sharp move higher in US Yields that has helped fuel the USD rally. While there is an expectation that this move will retrace somewhat, the trend may be shifting higher as we look at the charts. The move higher in yields also aligns with the sharp reversal in Gold prices from Wednesday morning.

D1 USD/JPY Chart: USD/JPY Has Arrived At Long-Term Resistance Shortly After U.S. Election

USD/JPY Technical Analysis: USD/JPY Catapults to 200-DMA Resistance

Chart Created by Tyler Yell, CMT, Courtesy of TradingView

USD/JPY has tested and aggressively pushed off of the 99/101 zone multiple times since the Brexit vote was confirmed on June 24. The Thursday high took us momentarily above the 200-DMA at 106.583 and about 50 pips short of the post-Brexit July high at 107.49.

Further pressure on these levels would likely be met with a rushin of bids or fear of missing out a trade that could keep USD/JPY bid through the 107.49 high. Two indicators that have been helpful in addition to the zone of support of 99/101 is the Ichimoku Cloud and the Andrew’s Pitchfork channel tool.

The Ichimoku Cloud continues to support the price on a closing basis although the sharp initial sell-off on early Wednesday morning trading that we mentioned above was likely due to option exercises. Should the price continue to close above the Ichimoku Cloud, there is little reason to fight the potential for a strong base developing.

Register For a Free Ichimoku Trading Webinar Hosted by Tyler Yell, CMT on Wednesday 3 pm EST

Lastly, Andrew’sPitchfork above is drawn off of key pivots that are made from the 2015 high, August 24 low and the lowerhigh in November. This Pitchfork has done an outstanding job of framing price action and keeping our focus lower. As of mid-day Thursday, the price is sitting at the top of the channel, which it has not traded near since the Bank of Japan announced negative interest rates on January 29, which was then proceeded by a sharp decline in the pair as the JPY advanced across the board.

Wednesday’s sharp move lower is being treated as part a bottoming process. The Bullish view that I’m holding would be validated on a close above the resistance levels mentioned above at 106.63/107.49.

Shorter-Term USD/JPY Technical Levels: November 10, 2016

For those interested in shorter-term levels of focus than the ones above, these levels signal important potential pivot levels over the next 48-hours.

USD/JPY Technical Analysis: USD/JPY Catapults to 200-DMA Resistance

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

DISCLOSURES