|Day's Range||0.009 - 0.009|
|52 Week Range||0.0087 - 0.0094|
The biggest influence on the USD/JPY last week was mounting concerns that the trade war between the U.S. and China could persist longer and curb GDP growth more than first thought. The concern surfaced after the release of weaker-than-expected U.S. manufacturing and services PMI data.
The US dollar initially tried to rally during the week against the Japanese yen but as you can see did pull back significantly to show signs of weakness again. While the US dollar strengthens against many other currencies, the Japanese yen is a bit of an outlier as it is considered to be “safer” than the greenback.
The US dollar stabilized against the Japanese yen during the trading session on Friday, as we continue to hover around the 109.70 level. This is a market that is highly sensitive to risk appetite, that tends to correlate quite nicely with the S&P 500.
Based on the early price action and the current price at 109.556, the direction of the USD/JPY on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 109.573.
Brexit and EU Elections along with UK retail sales figures to influence the GBP, with durable goods orders out of the U.S also in focus.
Japan's net external assets grew to their second-largest amount on record last year, rebounding from the prior year's decline and making it the top creditor nation for the 28th straight year, the Ministry of Finance (MOF) said on Friday. Japan's net external assets were about 1.3 times those held by Germany, the world's No.2 creditor nation with $2.35 trillion in net assets at the end of last year, followed by China. Gross external assets rose slightly to a record 1,018 trillion yen, reflecting increases in Japanese direct investment overseas and growth in non-resident lending.
Based on the early price action, the direction of the June U.S. Dollar Index on Thursday is likely to be determined by trader reaction to yesterday’s close at 97.881. Better-than-expected data could spike the Euro higher and the U.S. Dollar Index lower. The index could make a new high for the year if the data comes in weaker than expected.
The US dollar pulled back slightly against the Japanese yen during trading on Wednesday, and that being the case it’s very likely that we are going to continue to see a bit of range bound trading. After all, we are trying to fill a major gap and at the same time there are plenty of headwinds out there that make the markets nervous.
Based on yesterday’s close at 110.485 and the current price action, the direction of the USD/JPY on Wednesday is likely to be determined by trader reaction to the 50% level at 110.355.
UK Inflation and European politics to whipsaw the Pound ahead of the FED monetary policy meeting minutes later today.
The US dollar’s rallied a bit against the Japanese yen during early trading on Tuesday, in a sign of strength yet again. This of course is a pair that is very sensitive to risk appetite globally so you have to keep that in mind.
Based on the early price action and the current price at 97.900, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 97.950.
Based on the early price action, the direction of the USD/JPY on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 110.030. A sustained move over 110.030 will indicate the presence of buyers. Taking out 110.318 will negate the reversal top, while a move through the 50% level at 110.355 could trigger a spike into the short-term Fibonacci level at 110.672.
The Safe-haven pair dropped from last week’s high amid positive Japanese data and plunging USD Index. Iran Foreign Minister commented on Trump’s tweets against Iran as “genocidal taunts”.
June U.S. Dollar Index traders should keep an eye on the Euro since it is heavily weighted in the index. The Dollar Index could weaken if the EUR/USD takes out 1.1164 and strengthen if the EUR/USD breaks through 1.1152.
Based on last week’s price action and the close at 110.068, the direction of the USD/JPY this week is likely to be determined by trader reaction to the uptrending Gann angle at 110.180.
The US dollar initially fell during most of the week, but since then we have gone back and forth on the daily charts to form a bit of a zigzag on the way back to the highs. Adding more interest to the market is the fact that we are forming a weekly hammer.
The US dollar fell a bit during the trading session on Friday, as we continue to see a lot of noise against the Japanese yen. This makes sense, because there’s a lot of noise coming out of the US/China trade situation, and of course the Japanese yen is an extraordinarily “safe currency.”
Traders are taking advantage of a lull in news flow stemming from US-China trade tensions to send Asian stocks higher.
A relatively quiet economic calendar leaves Brexit and trade war chatter in focus. Is the trade spat about to get worse and can Theresa May deliver?
Buying sentiment towards the Dollar took a hit on Wednesday afternoon after US retail sales unexpectedly declined in April for the second time in three months.
The Aussie Dollar touches sub-$0.69 as more stats disappoint. Chatter on trade and a sparse economic calendar will be in focus today.
The early Wednesday movements in Asia suggest that investors are tepidly putting some risk back on the table, even as uncertainties surrounding US-China trade tensions continue to cast a cloud over market sentiments.
Economic data out of China set the tone early. How much of an impact has the trade war really had on both economies? Are we about to find out?