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
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
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
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
Bullish
More View more
Real Time News
  • AMC (6.75bln mkt cap) turned over 1.25 billion shares this past session for a 300% gain. Meanwhile Apple (2.4 tln mkt cap) only did 140 mln shares on an earnings day for a -0.8% loss
  • Will the US Dollar fall versus the Singapore Dollar, Taiwanese Dollar and Philippine Peso if a fiscal stimulus delay pressures Treasury yields? The Fed and earnings may keep risk appetite intact. Get your market update from @ddubrovskyFX here:https://t.co/Q7iRYGBcNo https://t.co/FxAL6FnUST
  • #Bitcoin starting to look extremely interesting as it carves out a Descending Triangle above $30,000 If support remains intact, a rebound back towards 33,500 looks on the cards A break of triangle resistance opening the door to a retest of the yearly high #BTC #BTCUSD https://t.co/0Su2gcNFag
  • All of this insanity is happening and we have only closed out Wednesday...
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:https://t.co/HuXPXu5PFU https://t.co/I7xklsoJbu
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Gold: -0.39% Oil - US Crude: -0.43% Silver: -0.73% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/IK2h1GkjM6
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.11% 🇬🇧GBP: -0.17% 🇨🇦CAD: -0.17% 🇯🇵JPY: -0.23% 🇳🇿NZD: -0.27% 🇦🇺AUD: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Xi4keE2PJP
  • Asia-Pacific equities extended lower after a bloodbath day on Wall Street: - Hang Seng (-2.11%) - Nikkei 225 (-1.09%) - CSI 300 (-2.34%) - ASX 200 (-2.20%) - Nifty 50 (-1.91%)
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in GBP/JPY are at opposite extremes with 66.81%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Q0oqIthe4P
  • Wall Street Futures Update: Dow Jones (-0.11%) S&P 500 (-0.35%) Nasdaq 100 (-0.46%) [delayed] -BBG
Japanese Yen Claws Back Ground As Coronavirus Stimulus Hits Dollar

Japanese Yen Claws Back Ground As Coronavirus Stimulus Hits Dollar

David Cottle, Analyst

Japanese Yen Technical Analysis Talking Points:

  • USD/JPY has fallen to key support in the wake of broad Dollar weakness
  • Whether or not it can hold in a daily closing basis is now important
  • AUD/JPY has bounced, but range trade dominates

The Japanese Yen has been just one beneficiary of a broad currency sweep as the US Dollar took a hit last week on the hope for, and then the reality of, massive stimulus to fight the coronavirus’ economic effects.

The $2 trillion relief bill joins other massive efforts from authorities around the world. Of course, caveats apply. These programs can doubtless help economies recover, but they can’t begin to fully work until infection rates abate. However, they do reassure nervous investors that the world’s governments aren’t shy of deploying the big guns and, taken with other measures from central banks, they also assuage fears of a liquidity crunch stemming from a potential lack of Dollars in the global system.

What they also do to some extent is lessen the need for Dollar hoarding as a haven play, and this impulse has been seen fulsomely in the case of USD/JPY even though of course the Japanese currency itself enjoys haven status among investors.

US Dollar Vs Japanese Yen, Daily Chart

Having briefly returned to its formerly dominant uptrend channel, USD/JPY has now abandoned it again, casting doubt on the channel’s utility as a predictive tool in anything but the very general sense in future.

The pair’s decline has been stalled in the 107.69 region which, tellingly, is also the second, 38.2% Fibonacci retracement of the rise from early March to the peaks seen on the 24th. It’s now time to keep a close eye on that point. A daily close below it will put 50% retracement at 106.45 firmly in focus. Indeed, given the broad daily ranges we’re now used to that point could be reached in short order,

If on the other hand Dollar bulls can force the pair back sustainably above 107.69 they’ve still got a major task ahead of them if they’re to break the longer term downtrend now forming on the daily chart. Starting from the highs of late February and sustained so far by the peaks of late March, the trendline now provides resistance well above the market at 111.51.

USD/JPY BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -17% 3% -9%
Weekly -14% 11% -4%
What does it mean for price action?
Get My Guide

As perhaps the quintessential growth-linked currency the Australian Dollar has unsurprisingly been unable to emulate the magnitude of the bounce against the greenback seen elsewhere.

Australian Dollar Vs Japanese Yen, Daily Chart

AUD/JPY is well above its recent lows, of course, but for the moment its bounce seems to have been stymied on a daily closing basis by resistance at Marc 13’s closing high of 66.70. The recent resurgence of beaten down risk appetite has seen the Australian Dollar’s heavy battering cease, but AUD/JPY has merely reverted to a narrow range trade which could as easily be the precursor of more weakness as a platform for gains.

A daily close outside the current range either way could be a good near-term clue as to which it will be.

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!

https://www.dailyfx.com/free_guide-tg.html?ref-author=Cottle.

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

DISCLOSURES