|Day's Range||109.8 - 110.099|
|52 Week Range||104.8710 - 112.2260|
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.
Investing.com - The U.S. dollar edged higher Wednesday as traders took a calmer view of the emergence of the pneumonia-like virus in China, but its gains were minimal and caution was still abundant.
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.
The British pound initially fell during the trading session on Tuesday, but then turned around to recovered quite nicely. The market broke above the ¥143.50 level, as the British employment numbers came out better than anticipated.
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.
Investing.com - The Japanese yen is in demand Tuesday as a safe haven currency with the outbreak of the pneumonia-like virus in China sparking a bout of risk aversion.
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.
The British pound initially gapped lower on Monday, but then turned around to show signs of strength. At this point, the gap has been filled, and it looks as if it is trying to continue going higher.
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.
Investing.com - The U.S. dollar was largely flat in European trading Monday, with the U.S. holiday providing little incentive for traders to take risks. That said, the greenback still looks strong against its main competitors.
The PBoC left LPRs steady this morning, with some time likely needed to asses the impact of recent cuts and the phase 1 agreement.
Monday will be the eighth session up from the last main bottom at 107.651. This puts the USD/JPY in the window of time for a closing price reversal top. This chart pattern won’t change the main trend to down, but it could trigger the start of a 2 to 3 day correction.
The Aussie and Kiwi were also underpinned by the inking of the trade deal, but domestic economic concerns limited gains as well as increasing chances of central bank rate cuts. Demand for higher-yielding assets drove the Japanese Yen lower.
The US dollar broke above the ¥110 level during the week but continues to struggle above there. That being said though, this is a market that looks as if it is ready to go higher over the longer term, as we are now above the 200 week EMA.
The British pound rallied against during the trading week to break above the 200 week EMA against the Japanese yen. This is a be decidedly “risk on” move, but there is a lot of noise above that will continue to make this messy.