|Bid||0.00 x 1000|
|Ask||0.00 x 1000|
|Day's Range||87.47 - 87.72|
|52 Week Range||83.92 - 91.62|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.40%|
To receive further updates on this PowerShares Japanese Yen ETF (NYSEARCA:FXY) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today. The yen rises in value when trade concerns and currency devaluations appear.
In Wednesday's Daily Market Commentary webinar, our analysts discussed the importance of using exchange rates as an early warning sign of bearish moves in the stock market. Stock investors may not be generally aware that the Japanese yen and the U.S. stock market have a high level of inverse correlation. If the yen is rising, there is a good chance that stocks will languish or fall.
Last week, the Japanese yen (JYN) depreciated against the US dollar for the eighth consecutive week as the dollar continued its upward surge. It was the best run for the dollar against the yen since October 2014. The primary reason for the yen’s weakness is the widening spread between the US and Japanese treasuries, which is being driven by strong US economic performance compared to Japan.
Last week, the US dollar (UUP) index bounced back from a minor pullback in the week ended May 11. Both are positive for the US dollar. According to the latest Commitment of Traders report released on May 18 by the Chicago Futures Trading Commission, large speculators and traders have trimmed their short positions on the US dollar index.
The US Iran nuclear deal pullout failed to increase demand for haven bids such as the yen. The yen (FXY) closed last week at 109.39 against the US dollar (UUP), depreciating by 0.25%. A weak yen is positive for the export-dependent Japanese economy.
The US dollar index (UUP) took a breather last week, closing at 92.44, 0.03% higher than its close of 92.41 in the week ended May 4. The US dollar’s three-week rally was interrupted by the weak inflation report published last week, which was preceded by a weak jobs report on May 4. This US dollar slowdown could only be a speed breaker as the Fed remains the only central bank expected to tighten policies in the near term. The recently rejuvenated dollar-bond market correlation could continue supporting the dollar against major developed, developing, and emerging market currencies.
Last week, the Japanese yen (JYN) depreciated against the US dollar for a sixth consecutive week as the US dollar continued to rally. The US dollar rallied due to the Fed’s hawkishness and continued economic improvement. As Japanese markets were closed for three days last week, there was limited data reported from the Japanese economy. In the week ended May 4, the yen (FXY) closed at 109.1 against the US dollar (UUP), depreciating 0.06%. The yen’s (YCL) dream run seems to be done for now, and yen speculators have moved into bearish territory after staying net long for a little over four weeks.
In April, the US dollar index posted one of its best monthly gains (2.0%) since November 2016, and it looks set to continue with the trend this month. The main reason for this appreciation has been a higher positive correlation between the US dollar and bond yields. Rising bond yields increase the US-international bond spread, which increases preference for US bonds as they have better ratings.
It's no secret that Japanese stocks and the yen often move in opposite directions. The inverse relationship was on display in the first quarter when the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ ) ...
The Japanese yen (JYN) depreciated against the US dollar for a fifth consecutive week, as the US dollar continued to rally on the back of higher bond yields and the prospect of a faster rate hike pace from the US Fed. The Bank of Japan had its April meeting and left all policy rates unchanged, and the key takeaway was removing the target date to achieve the 2% inflation target. Japanese yen (YCL) speculators are moving back into short territory after staying net-long for four weeks. As per the latest “Commitment of Traders” (or COT) report, released on April 27 by the Chicago Futures Trading Commission (or CFTC), speculators on the Japanese yen had a net long position of 583 contracts, compared to 2,591 long contracts the week before.
The Japanese yen (JYN) continued its depreciating trend in the previous week. Risk aversion receded and the US dollar rallied following higher bond yields and commodity prices. Now that geopolitical risks have declined, the demand for the yen as a safe haven will likely be low and could lead to more depreciation.
The US dollar (UUP) gained some lost ground last week due to reduced risk aversion, rising bond yields, weak economic data from global peers, and higher commodity prices. The US dollar rallied after bond yields started to rise and the ten-year yield broke past the February 2018 high. Economic data from the US included an acceptable level of retail sales and an optimistic Federal Beige Book. The US Dollar Index closed above 90.0 for the first time in five weeks and posted a weekly gain of 0.65%.
The Japanese yen (JYN), a safe haven asset, has failed to appreciate despite an increase in uncertainty in recent weeks. Despite ongoing trade war concerns and the US-led attack on Syrian chemical weapon facilities, the yen fell. In the week ended April 13, the yen (FXY) closed at 107.3 against the US dollar (UUP), depreciating by 0.38%.
The US dollar (UUP) came under pressure after Donald Trump, in a tweet, accused Russia and China “playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!” Trump’s complaint has been interpreted as an attempt to escalate tensions to achieve favorable trade negotiation terms. According to the latest Commitment of Traders report, released on April 13 by the Commodity Futures Trading Commission, large speculators and traders have increased their short positions on the US dollar for a third consecutive week. This amount is a combination of the US dollar’s contracts against the combined contracts of the euro (FXE), British pound (FXB), Japanese yen (FXY), Australian dollar (FXA), Canadian dollar (FXC), and Swiss franc.
The Japanese yen (JYN) managed to claw back its losses after the scare about a second round of tariffs hit the global financial markets last week. Japan’s February exports, March manufacturing, and inflation reports are expected this week.
The US Dollar Index appreciated for a fourth consecutive week due in part to the impressive industrial production and consumer confidence numbers that were reported at the end of the previous week. Earlier in the previous week, lower-than-expected inflation growth and retail sales numbers had little impact on the US dollar as markets have already priced in a rate hike from the US Fed at its March meeting. The turmoil in the White House had a marginal negative impact on the US dollar as the pressure from the Mueller probe reached the Trump businesses last week.
The Japanese yen (JYN) lost out to increased risk appetite thanks to softer-than-expected tariffs and the positive geopolitical development involving US President Donald Trump and North Korea’s Kim Jong Un. Also driving the yen higher were the comments from the Bank of Japan’s governor, Haruhiko Kuroda, who tried to take back his comments about the policy shift toward tightening. For the week ended March 9, the yen (FXY) closed at 106.80 compared to the US dollar (UUP), an appreciation of 0.99%.
The Japanese yen (JYN) regained its strength against the US dollar. The other factor that contributed to the yen’s appreciation was the comment from Bank of Japan Governor Haruhiko Kuroda. Kuroda used the word “exit” when referring to the central bank’s accommodative monetary policy program.
The US Dollar Index closed the previous week with minor gains, but the index suffered after the announcement about tariffs last week. Historically, US tariffs on imports have been negative for the US dollar. If the current proposal becomes a law, the US dollar could have a similar fate.
The Japanese yen (JYN) gave up some of its gains in the previous week as the US dollar appreciated on the back of the increased odds of US rate hikes in the near future. The US dollar received a boost from the FOMC meeting minutes, which indirectly had a negative impact on the Japanese yen. Improved economic indicators from Japan did little to boost the yen last week.