|Day's Range||0.009 - 0.009|
|52 Week Range||0.0089 - 0.0095|
The emphasis this week will be on safety. Given the worsening coronavirus problem, I expect global stock markets to open sharply lower and the Japanese Yen to spike higher as investors seek safe-haven protection.
Based on the events over the weekend with the spreading of the coronavirus, we’re expecting to see a lower opening.
The US dollar has done very little against the Japanese yen, as the market tried to rally a bit, but at this point it looks very sluggish and like it’s going to struggle to go anywhere significant in the short term.
The US dollar pulled back a bit during the week against the Japanese yen, as we are now likely to test the ¥109 level. That being said, there should be plenty of support just below as well.
Conditions could change late in the session as investors decide whether to hold risky stock positions over the weekend.
It’s a busy day ahead, with private sector PMIs for January to set the tone. Expect retail sales figures from Canada to also drive the Loonie.
The US dollar pulled back against the Japanese yen rather stringently during the trading session on Thursday, raking below the ¥109.50 level. However, we should have plenty of support underneath.
The World Health Organization (WHO) postponed a decision Wednesday over whether to declare the disease a global emergency. However, the WHO is expected to make the announcement today. This news should dictate the next move in the Dollar/Yen.
Employment figures give the Aussie a boost as the focus shifts to the ECB. Will Lagarde follow the BoC with a dovish outlook to sink the EUR?
The Japanese economy has been hit hard by the weak global economy, and the growth forecasts for 2020 could mean more economic turbulence lies ahead.
The US dollar initially tried to rally during the trading session on Wednesday but gave back the gains to show a less than impressive move against the Japanese yen.
The early price action suggests an easing of concerns over the spread of coronavirus could encourage investors to liquidate their safe-haven Japanese Yen positions placed earlier in the week. This would drive the USD/JPY higher.
The US dollar has pulled back a bit during the trading session on Tuesday but found support below the 1.10 level to turn things around and show just how bullish this market truly is.
In times of political and economic uncertainties, analysts recommend investing in safe-haven assets. The US dollar, Japanese yen, and gold were always considered as the main refuges.
IMF attributes ‘the lion’s share’ of downward revision to ‘more subdued growth forecast’ for India. Asia’s third-largest economy, is expected to grow by 5.8% in 2020, a 1.2 percentage point markdown from the organization’s October forecast.
In a quarterly review of its forecasts, the BOJ revised up its growth projection for the fiscal year beginning in April to 0.9% from an estimate of 0.7% growth made in October, helped by a boost from the government’s fiscal stimulus package.
Based on the early price action and the current price at 108.929, the direction of the USD/JPY the rest of the session on Tuesday is likely to be determined by trader reaction to the minor pivot at 110.040.
More stats due out of the UK could test the Pound further this afternoon. Earlier in the day, the BoJ held rates steady.
The US dollar has rallied a bit against the Japanese yen early on Monday, as we continue to see strength in general. At this point, the market will more than likely find buyers on dips as we have clearly broken through a major level at one point last week.
Monday is a day off in the American markets due to the Martin Luther King’s Day. Because of the holiday, trading on other markets also promises to be muted.
Dear Traders, The USD/JPY has already reached M H5 camarilla level. We can see that the pink dot appeared, signaling for a potential counter trend move.
The Bank of Japan will issue its Outlook Report and Monetary Policy on Tuesday. It is expected to leave interest rates and policy unchanged. Also expect policymakers to say they are optimistic about a recovery in the economy because of the signing of the U.S.-China trade deal.