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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • China asks local governments to prepare for potential Evergrande failure - Dow Jones via BBG
  • USD/CAD set a fresh September high on Monday and yesterday prices snapped back to a key support zone more than 200 pips away. Get your $USDCAD market update from @JStanleyFX here:https://t.co/szxH78QjVR https://t.co/pXAv4hZdn9
  • A noticeable move lower in EUR/GBP as the Bank of England strikes a slightly more hawkish tone $EURGBP https://t.co/tiiv3x0dM2
  • $SPX Daily. . . Before & After #FOMC . . . https://t.co/yXrFqH6mHx https://t.co/pT33kiYiXg
  • A big move in the US 10-year Treasury yield following yesterday's FOMC meeting. Resistance around 1.38% was broken easily, with the 10Y settling around 1.43% $ZN $ZB https://t.co/k6eht1IkXG
  • The Bitcoin plunge turned off near-term downtrend support and while we could see more recovery in the short-run, the risk remains lower while within this formation. Get your $btc market update from @MBForex here:https://t.co/Vf94gjIqhx https://t.co/nqhU8Ve5mx
  • The Central Bank of the Republic of Turkey ended its monetary tightening cycle will a surprise 100-bps rate cut on Thursday. Get your market update from @CVecchioFX here:https://t.co/zbhiBmUKiO https://t.co/AYxFnqB7ou
  • Risk on sentiment has buoyed AUD/USD, with the cross trading back above 0.7300 $AUDUSD https://t.co/Bx5MOuIgDb
  • The morning after the Fed has produced some robust moves in markets, with both stocks and bonds putting in a notable leap. Get your market update from @JStanleyFX here:https://t.co/7sQ4d63PLM https://t.co/vfrKuhDUce
  • Gold trades back down to $1,750 as US real yields tick higher $XAUUSD #Gold https://t.co/yMtnYCBsaa
Strategy Video: What's Driving USD/JPY and the Yen Crosses?

Strategy Video: What's Driving USD/JPY and the Yen Crosses?

John Kicklighter, Chief Strategist

Talking Points:

  • USD/JPY extended one of its biggest two-day rallies since the BoJ announcement of the QQE upgrade
  • The conviction of a Yen cross reversal is tepid technically and unstable fundamentally
  • We look at the risk, carry and intervention contributions to the direction of the Yen crosses

See how retail traders are positioning in the Yen crosses using the SSI statistics on the DailyFX Sentiment Page. Also, see what DailyFX analysts expect from the Japanese Yen through the rest of the second quarter here.

The two-day rally USD/JPY has posted through Tuesday is one of the sharpest rallies we have seen from the pair since the dramatic surge following the BoJ's QQE upgrade back in late October 2014. Given the speculative focus and wild disparity in expectations for the the Yen crosses and this pair in particular, such a move will stir deeper sentiments. While trader debate can generate volatility, it is difficult to translate into a clear trend. We need to find a more grounded, fundamental motivation to guide follow through or falter. Risk trends have rallied this past session through US and global equities. Relative monetary policy has not witnessed a sudden spark of divergent policy bearings, but the contrast remains. And, intervention is a constant worry (or hope, depending on your view) amongst those trading Yen pairs. Which of these themes has supported this rebound and do they have staying power? We focus in on the Japanese Yen in today's Strategy Video.

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

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

DISCLOSURES