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
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
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • Gold Price: XAU/USD Key Chart Signals to end Consolidation- GLD Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2019/12/16/Gold-Price-XAUUSD-Key-Signals-to-end-Consolidation--GLD-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/WUxDroWEBk
  • Positive session so far for equities...#ftse #equities @IGcom https://t.co/m6WsAEBdfn
  • Tune in to @nickcawley1 's #webinar at 6:30 AM ET/11:30 AM GMT to prepare for key UK events and markets in the week ahead. Register here: https://t.co/xewSeUoDaT https://t.co/xV9JF9o763
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/Q3sPmP2rya #tradingstyle https://t.co/sSU5q2ObQm
  • Missed today's Cross-Market Weekly Outlook webinar? See the recording here: https://t.co/d1rb3hCZTH We discussed: - US-China #trade deal - #Brexit outlook after the UK general election - US #Dollar outlook going into 2020
  • European Opening Calls From IG: #FTSE 7392 +0.53% #DAX 13346 +0.48% #CAC 5955 +0.60% #AEX 607 +0.74% #MIB 23509 +0.77% #IBEX 9622 +0.61% #STOXX 3754 +0.61%
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/IbzSBk5Hb1
  • Join @DavidCottleFX 's #webinar at 3:00 AM ET/8:00 AM GMT for your weekly update on the top Asia Pacific market drivers that traders should watch this week. Register here: https://t.co/HNf3Axw8s5 https://t.co/iMMiza1J1d
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/im72E4Szmi
  • The Riksbank – the world’s oldest central bank - will exit its negative interest rate policy for the first time in known history as officials explore uncharted territory with unknown consequences. https://www.dailyfx.com/forex/fundamental/article/special_report/2019/12/16/Worlds-Oldest-Central-Bank-to-Exit-Negative-Rate-Policy-First.html
USD/JPY Hits Highest Level Since March As Kuroda Backs Further Easing

USD/JPY Hits Highest Level Since March As Kuroda Backs Further Easing

2017-11-06 19:08:00
Tyler Yell, CMT, Currency Strategist
Share:

To receive Tyler’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/JPY Technical Strategy: anticipating break and hold above 7-month resistance at 115
  • Monetary policy divergence appears sure bet after Kuroda’s comments and Fed tightening bets
  • Sentiment Highlight: jump in USD/JPY longs cast ST doubt on advancing price

The price of USD/JPY advanced to the highest level since March on further evidence that the monetary policy path between the United States and Japan will diverge in coming years. Over the last week, traders found out that Jerome Powell is set to take over the Federal Reserve in February and that the Federal Reserve is likely to continue normalizing monetary policy through increasing the reference rate in coming years. Things couldn’t be much different in Japan. After a recent political victory for Shinzo Abe (PM of Japan), Kuroda’s position appears secure, and it looks like the BoJ cannot get enough of their easing program, known as QQE (Quantitative and Qualitative Easing.)

On Monday, Bank of Japan Governor Haruhiko Kuroda stressed the need for powerful easing to continue as he stated that the BoJ is still a long way from achieving their 2% inflation goal. The statement reiterates what we heard from the BoJ last week at their monetary policy meeting that left rates unchanged. However, Monday’s message allowed the price of USD/JPY to break above the the July 11 peak of 114.49. The intraday high was 114.73. Traders should keep an eye on the March high of 115.51, and a breakout above this zone would turn focus 116.234 (78.6 of December-September range.)

Traders would do well to hold a longer-term bullish view above the October low of 111.65. The long-term forces favor an extension higher toward the YTD high of 118.60, reached on January 3.

Unlock our Q4 forecast to learn what will drive trends for the Japanese Yen and the US Dollar through year-end!

USD/JPY Hits Highest Level Since March As Kuroda Backs Further Easing

Chart created by Tyler Yell, CMT. Tweet @ForexYell for comments, questions

USD/JPY Insight from IG Client Positioning: jump in USD/JPY longs cast ST doubt on advancing price

The sentiment highlight section is designed to help you see how DailyFX utilizes the insights derived from IG Client Sentiment, and how client positioning can lead to trade ideas. If you have any questions on this indicator, you are welcome to reach out to the author of this article with questions at tyell@dailyfx.com.

USD/JPY Hits Highest Level Since March As Kuroda Backs Further Easing

USDJPY: Retail trader data shows 49.9% of traders are net-long with the ratio of traders short to long at 1.01 to 1. The number of traders net-long is 14.1% higher than yesterday and 3.5% higher from last week, while the number of traders net-short is 14.5% lower than yesterday and 0.6% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse lower despite the fact traders remain net-short (emphasis added.)

---

Written by Tyler Yell, CMT, Currency Analyst & Trading Instructor for DailyFX.com

To receive Tyler's analysis directly via email, please SIGN UP HERE

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.