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
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/6BhlgjWVYw
  • We are going to start the new trading week with a few critical technical breaks like the $QQQ's (NDX) H&S neckline break on volume and EURUSD's clearance below 1.1950. Are these the makings of trends? My take: https://www.dailyfx.com/forex/video/daily_news_report/2021/03/06/EURUSD-and-Nasdaq-100-to-Start-Week-with-Multi-Month-Breakdown.html https://t.co/iR5w7iDkDU
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/OR70NHkgeI
  • What are some factors driving AUD? Get your free forecast for this quarter here:https://t.co/z85CIVYiuK #DailyFXGuides https://t.co/nd93gXDswq
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/xeidoj2K9f
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/1rhLp4LnfN
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/RKYGzRStvL
  • The US Dollar is moving higher after a blowout NFP report bolstered confidence in the US economic recovery. Markets will now turn attention to next week’s US inflation data which could boost the Greenback. Get your market alert from @FxWestwater here: https://t.co/Ud62r3hKRF https://t.co/dvvDCJvlbP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/7g9pB8D9xK
  • 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: https://t.co/ADSC4sIHrP https://t.co/OCLzmXaDCu
Japanese Yen Bulls Held At Bay Despite Ongoing US-China Trade Worries

Japanese Yen Bulls Held At Bay Despite Ongoing US-China Trade Worries

David Cottle, Analyst

Japanese Yen Technical Analysis Talking Points:

  • USDJPY remains in a clear downtrend
  • However, within that, a broad range trade now dominates
  • How that range breaks will probably be decisive for medium-term direction

Find out what retail foreign exchange traders make of the Japanese Yen’s chances right now at the DailyFX Sentiment Page.

The Japanese Yen remains in the ascendant. This is unsurprising given shaky global risk appetite, rooted in the long-running US-China trade dispute and now bolstered by major protests in Hong Kong.

There’s plenty of impetus on the ‘USD’ side of USD/JPY, with markets now more and more convinced that US interest rates won’t rise further. Indeed, the chance that they may rather fall next month is put at more than 85% currently by the Chicago Mercantile Exchange’s ‘Fedwatch’ tool

Still, technically speaking USD/JPY has run into at least a hiatus on its undoubtedly bearish daily chart. For sure the long downtrend which has been in place since the highs of late April. This hiatus takes the form of broad range trading. The precise barriers of the range vary of course depending on whether one looks at intraday peaks and troughs or sticks with daily opens and closes.

At its broadest the band runs from 108.81, last Tuesday’s intraday high, down to 107.82, the intraday low of both June 3 and 4.

US Dollar Vs Japanese Yen, Daily Chart

This range has held good since the sharp falls of May 31 and it seems reasonable to assume that a break, when it comes will set near-term direction. Currently the pair is right in the center of its prevalent downtrend channel, however, and it seems very premature to talk of that braking either way.

If the current trading band snaps to the upside focus will be on channel resistance at 109.33. That’s quite a long way above the market though and I don’t expect a near-term test. Channel support lies at 107.16 and that seems more likely to be revisited first given current price action.

The Australian Dollar very often plays the opposite role to the Japanese Yen in foreign exchange markets. With its close correlation to global growth prospects thanks to a variety of factors, not least Australia’s raw material exports to China, it’s one of the most pro-risk currencies out there. It’s hardly surprising therefore that it should now be losing its battle with the Yen and it assuredly is.

AUD/JPY is now within a whisker of its daily-close lows for the year which were struck on January 10 at 0.7427.

Australian Dollar Vs Japanese Yen, Daily Chart

The cross’s fall seems to have halted just north of the 61.8% Fibonacci retracement level of its monthly chart climb up from the post-crisis lows of 2008 to the peaks of 2013. That comes in at 0.7429. Should that give way on a monthly close then there won’t be much support for the Aussie between there and those 2009 lows. Retracement all the way down to 0.5500 could be a real prospect over the longer term in that case.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES