|Day's Range||0.009 - 0.009|
|52 Week Range||0.0087 - 0.0094|
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?
Based on Tuesday’s close at 109.606 and the inside trading range, the direction of the USD/JPY on Wednesday is likely to be determined by trader reaction to Monday’s high at 109.859.
The U.S. dollar strengthens Tuesday, attempting to snap a 4-day losing streak against its key rivals, amid a contentious dispute between the U.S. and China over trade.
The Brexit deadlock continued to trouble the Cable. Crude prices jumped for the second time in this week following a drone attack on the Saudi State Oil Company.
The US dollar bounced a bit during the trading session on Tuesday, as the ¥109 level has held as support. That being said, we had given back some of the gains early in the day, so we could be looking at short-term range bound trading.
The Chinese yuan on Monday tumbled to its lowest level since Christmas Day 2018 as the fallout from the trade spat between the U.S. and China continues.
As a response to the recent US additional tariffs, the Chinese today retaliated by imposing tariffs on over $60 Billion of US imports. The investor sentiment dropped.
The Chinese yuan tumbled more than 1.1% on Monday, on track to log its biggest daily loss versus the greenback in nearly four years, after trade relations between the U.S. and China hit another stumbling block.
The US dollar fell a bit against the Japanese yen during trading on Monday, as we continue to see a lot of concerns around the US/China trade relations. Money went into the Japanese yen as it is considered to be a safety currency, and of course stock markets got hammered in the Asian future session.
Further weakness and volatility in the global equity markets will likely put pressure on global interest rates and this will help increase the Japanese Yen’s appeal as a safe-haven asset. If conditions calm and stocks start to recover then look for the USD/JPY to start to recover some of last week’s losses.
Given Friday’s inside move and expectations of increased volatility, the direction of the USD/JPY on Monday is likely to be determined by trader reaction to 110.120 and 109.470.
Remember the steep break from October to late December? It was blamed on the Fed’s hawkish monetary policy. Stocks took off after the US and China started talking and the Fed turned dovish. The US and China never signed a deal, but the Fed held rates steady. Yet the S&P 500 Index and the NASDAQ Composite still hit new all-time highs.
The US dollar gapped lower to kick off the week on Monday as tensions between the Americans and Chinese continue to flareup. That being the case, we reached all the way down to major support.
The US dollar initially rallied during the trading session on Friday, using the ¥109.50 level as support over the last couple of days. However, as Donald Trump continues to tweet, markets continue to struggle as we focus on China trade talks.
The direction of the USD/JPY on Friday will be determined by investor demand for risk. If the developing “risk-on” scenario continues then look for the Dollar/Yen to firm and start recovering some of this week’s losses.