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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
Bullish
Gold
Bearish
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.19% 🇳🇿NZD: 0.19% 🇨🇭CHF: 0.06% 🇪🇺EUR: -0.04% 🇬🇧GBP: -0.08% 🇯🇵JPY: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/jOgEIxjTiT
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: France 40: 0.85% Germany 30: 0.84% FTSE 100: 0.65% Wall Street: 0.23% US 500: 0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/CIkPYnBu5L
  • #Gold prices are sinking, dipping back below the $2k/oz figure as inflation expectations continue to ease following Friday's US jobs data. The report showed faster job creation and higher wage growth, cooling Fed stimulus bets
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/D5upwqIsgB
  • 🇬🇧 Claimant Count Change (JUL) Actual: 94.4K Expected: 10K Previous: -28.1K https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Employment Change (MAY) Actual: -220K Expected: -288K Previous: -126K https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Average Earnings excl. Bonus (JUN) Actual: -0.2% Expected: -0.1% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Average Earnings incl. Bonus (JUN) Actual: -1.2% Expected: -1.1% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Unemployment Rate (JUN) Actual: 3.9% Expected: 4.2% Previous: 3.9% https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Claimant Count Change (JUL) Actual: -28.1K Expected: 10K Previous: -28.1K https://www.dailyfx.com/economic-calendar#2020-08-11
USD/JPY Technical Analysis: Political Risk Aversion Keeps JPY Bid

USD/JPY Technical Analysis: Political Risk Aversion Keeps JPY Bid

2017-02-02 22:53:00
Tyler Yell, CMT, Currency Strategist
Share:

Talking Points:

USD/JPY continues to be a pair that trades in a direction opposite to what many anticipated at the start of the year. On the back of a large move higher, relatively speaking, in the front-end of the curve helped by the Federal Reserve pushing up the median number of hikes lifted USD/JPY to as high as 118.61 in mid-December. Since then, we’ve traded as low as 112.05 on Thurday morning.

A lot of politically-based risk aversion stories have come on the scene in the past few weeks, but looking past the media coverage, you can see a flattening of the US yield curve and a continuation of the multi-week downtrend in USD/JPY.

We often say that price is the best indicator as it’s the only fact on the chart. Everything else is suspect to interpretation but what the price is or was t a specific point cannot be argued. The move lower within the clearly identified range shows an unwillingness for traders to aggressively buy USD in the same manner that they did in November and the first half of December, while JPY continues to oscillate in the middle of the range of G10 relative strength.

Interested in Joining Our Analysts, Instructors, or Strategists For a Free Webinar? Register Here

On Thursday, DXY took a sizeable hit in the morning after Treasuries opened the session higher that kept a ceiling on yields as the 10Y yield dropped toward 2.45% causing DXY to fall in the session before reversing after the 11am EST London fix.Traders that are comfortable with the Ichimoku Cloud can keep an eye on the 240-minute chart to use the cloud as resistance before trying to get aggressive and “buy the low.” The cloud currently sits near 114 and the zone above 114 would be the 115.60 level we mentioned last week as resistance, which was never overcome.

On the downside, traders should keep an eye on a zone of prior pivots near 111.45/88. This level would take us below the 38.2% Fibonacci retracement point of the post-election rally. A break below there would favor a move to 110, which is the 50% retracement, and a zone we’ve been watching as possible downside support since early January.

There remains a large consensus that JPY strength is likely short-lived. Therefore, a break above the resistance mentioned above could be the beginning of an aggressive to and through the December high of 118.61.

H4 USD/JPY Chart: USD/JPY Breaks Above Corrective Channel & H4 Ichimoku Cloud

USD/JPY Technical Analysis: Political Risk Aversion Keeps JPY Bid

Chart Created by Tyler Yell, CMT, Courtesy of TradingView

---

Shorter-Term USD/JPY Technical Levels: February 2, 2017

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: Political Risk Aversion Keeps JPY Bid

Contact and discuss markets with Tyler on Twitter: @ForexYell

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

DISCLOSURES

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.