|Day's Range||0.009 - 0.009|
|52 Week Range||0.0088 - 0.0095|
Some traders are calling the negative headlines “noise”, further saying that traders are basically following the news on the trade war, and having a hard time predicting when we will have good news or bad news. This creates uncertainty and investors tend to leave risky assets when there is uncertainty and seek protection in the safe-haven Japanese Yen.
The HK Bill in support of the protestors is on its way to the Oval Office. Trump’s signature may well raise doubts over a phase 1 trade agreement.
The US dollar initially pulled back against the Japanese yen but then turned around to show signs of support. At this point, the market then looks as if we are trying to continue the move higher, but obviously there is a lot of new slow out there that continues to throw risk appetite around.
During a meeting with his Cabinet on Tuesday, President Donald Trump threatened higher tariffs on Chinese goods if that country does not make a deal on trade. Bank of Japan Governor Haruhiko Kuroda’s role as the prime focus for efforts to revive the world’s third-largest economy is coming to an end, according to Bloomberg.
Trade tensions, UK politics, the FOMC meeting minutes and inflation figures out of Canada will keep the markets busy throughout the day…
The US dollar has been all over the place against the Japanese yen as there is no clear path to the US/China trade situation. At this point, the market is likely to continue to be very noisy, so keep that in mind. The 200 day EMA is sitting just above with the 50 day EMA sitting just below.
The Bank of Japan has room to deepen negative interest rates, Governor Haruhiko Kuroda said on Tuesday, but he signaled there were limited to how far it can cut rates or ramp up stimulus.
USD/JPY made a strong bearish bounce at the 61.8% Fibonacci retracement level of wave X vs W. But a bearish breakout below support (blue) is needed before we can confirm a full downtrend.
Chatter on trade remains the key driver, with negative updates from Beijing weighing on risk appetite early. The RBA added further pressure on the Aussie.
Based on the early price action and the current price at 108.815, the direction of the USD/JPY is likely to be determined by trader reaction to the minor pivot at 108.866.
The Pound makes an early move, supported by the latest opinion polls. The ECB Financial Stability Review and Trade will also influence.
Hopes that the United States and China may soon end their trade war after a pair of high-ranking White House officials drove down demand for the safe-haven Japanese Yen on Friday. This move could continue this week if the optimism prevails.
Mixed comments about the status of trade talks between the United States and China encouraged some investors to seek shelter in the safe-haven Japanese Yen. The Australian Dollar closed lower last week after the country’s employment report for the month of October created a surprise disappointment among investors. The New Zealand Dollar finished the week sharply higher after wholesale interest rates spiked after the Reserve Bank left its official cash rate (OCR) unchanged at 1 percent.
USD/JPY has been steadily decreasing in recent days, as the bulls had trouble overcoming the orange resistance zone. The pair has ended its losing streak with today’s rise, however. Does it mark the end of its decline, or is there more to come?
The US dollar fell during a large part of the week, but then turned around to show signs of life towards the end as we continue to press up against a major resistance barrier.
The US dollar rallied a bit during the trading session on Friday the in the week on a positive note, as Larry Kudlow has suggested that the US and China are making progress on “Phase 1” of the trade deal.
The USD/JPY is trading higher on Friday on the back of positive developments over a potential trade deal, however, gains are being limited by lingering worries.
Key US indices continue to rush historical highs. Futures on S&P500; crossed the 3100 mark, adding one third to the price against the lows of the end of last year.
The economic calendar shifts focus to the U.S Dollar. Following Powell’s positive outlook on the economy, retail sales will need to impress…
The Japanese Yen hardly budged after Japan’s GDP data showed the economy grew an annualized 0.2% in July-September, much below economists’ forecast of 0.8%. This is because investors are focused on the lack of progress over a trade deal, and the Japanese Yen’s appeal as a safe-haven asset.
Particularly weak economic data weighed on the risk appetite early on, with a busy day of stats likely to test the markets further in the day.
The US dollar has initially tried to rally during the trading session on Wednesday but then broke down towards the 200 day EMA. At this point, the market looks very likely to continue to see a lot of choppiness, as we had recently tested a major barrier and failed.
Despite the importance of the consumer inflation data and Powell’s testimony, I don’t think USD/JPY will be rattled by anything these events show. Inflation is expected to remain tame, and Powell is usually pretty tight-lipped so he’s not expected to shake up the markets.
With the USD/JPY trading between retracement levels, the next move will be determined by short-term momentum. Fundamentally, this Forex pair isn’t likely to move much until Treasury yields move. Wednesday’s U.S. consumer inflation report and testimony from Federal Reserve Chairman Powell could move yields.