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
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
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
Bitcoin
Mixed
More View more
Real Time News
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
Japanese Yen Loses More Ground But USD/JPY Downtrends Endure

Japanese Yen Loses More Ground But USD/JPY Downtrends Endure

2020-01-20 03:00:00
David Cottle, Analyst
Share:

Japanese Yen Technical Analysis Talking Points:

  • The Japanese Yen finds itself out of favor as riskier assets tempt investors
  • USD/JPY remains short of an important downtrend, however, and well short of the key long-term one
  • AUD/JPY has tracked the US Dollar’s fortunes but now appears stretched

The Japanese Yen remains on the back foot as market fundamentals seem to argue increasingly against such counter-cyclical haven assets.

US equity is getting close to its longest and largest bull run ever as earnings season continues to please the crowds and many of the problems which beset 2019 seem less pressing. China and the US have signed what may be an underwhelming phase one trade deal, but the two sides seem resolved to move on to phase two and are at least still talking. Confrontation between the US and Iran has de-escalated short of full-scale military conflict and even the torturous Brexit story is moving on with the election of a big majority in favor of getting it done.

Technically speaking USD/JPY has Dollar bulls in charge. The pair is at what could be a crucial point on its monthly chart, nuzzling against a downtrend which has been in place since June 2015.

US Dollar Vs Japanese Yen, Monthly Chart

Clearly the run into month end will be most instructive for investors with a conclusive break above that point probably more bullish than it might appear. It would leave November 2018’s peak of 114.40 very much in play as a medium-term target.

It is notable however that the prevailing downtrend from 1998 remains a very long way above the market for Dollar bulls. That trend would only be broken with a break of 120.00 at this point and traders would do well to recall that the Dollar actually remains capped by that trendline even if we see a break higher this month.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by David Cottle
Improve your trading with IG Client Sentiment Data
Get My Guide

In any case, that break is not assured. On its daily chart USD/JPY has risen sharply above what looks like an important trading range which goes back to November 6. The rise up from January 8 was sharp, and has seen the pair start to look overbought. The fate of this range could be important into month end, with a fall back within it likely to keep that downtrend from 2015 in place.

US Dollar Vs Japanese Yen, Daily Chart

The Australian Dollar has put in a similarly sharp run higher against the Japanese Yen. This is a clear sign of increasing overall market risk appetite with this cross encompassing arguably the market’s favorite pro-growth unit in the case of the Aussie, and its number-one haven play in the case of the Yen.

However, that rise is losing steam with AUD/JPY showing signs of topping out well below December 27’s seven-month high of 76.62.

Australian Dollar Vs Japanese Yen, Daily Chart

In quite well-correlated markets it seems unlikely that a break higher for USD/JPY would fail to perk up AUD/JPY as well, but this range will need watching as the week goes on.

Join our analysts for live, interactive coverage of all major Japanese economic data at the DailyFX Webinars. We’d love to have you along.

Japanese Yen 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

News & Analysis at your fingertips.