The yen sure knows how to mix things up, doesn’t it? While the Japanese currency lost ground to the U.S. dollar on Friday, it was able to sneak in some gains against the euro and pound. EUR/JPY dipped to a low of 123.81 before ending the day close to the 125.00 handle while GBP/JPY reached a low of 142.68.
There were no major reports released from Japan last Friday as the Japanese yen got pushed around by its counterparts. Today could be a different story though as there are a bunch of medium-tier reports on Japan’s agenda.
Earlier today, Japan printed a weaker than expected core machinery orders report which showed a 1.3% decline for January, way worse than the estimated 1.3% drop. Later on today, the BOJ is set to release the minutes of their latest policy meeting and this could shed more light on the policymakers’ assessment of the economy and what the central bank plans to do next.
Watch out for the release of the BSI manufacturing index and the tertiary industry activity index as well. The manufacturing report is expected to show a bit of an improvement from -10.3 to -6.2 while the tertiary industry index could print a 0.1% decline. Keep an eye out for the actual figures due 11:50 pm GMT as these could move the yen pairs!
Guess who was at the bottom of the dog pile? That’s right - the yen! Yesterday’s weakest performer was none other than the Japanese currency, which lost 33 pips against the dollar, 95 pips against the euro, and 57 pips against the pound.
It hit fresh lows against its counterparts thanks to a report that said that Haruhiko Kuroda had hinted that he may take action and announce bold monetary easing measures soon after he assumes the role of BOJ governor next week. Bummer, dude! People were expecting him to wait until the next board meeting in April to make his move, but apparently, Kuroda might have other plans in mind.
With the threat of an early announcement of easing looming over the yen’s shoulders, it’s hard to imagine it gaining ground in the coming days.
In other news, we got some mixed reports from Japan just a few moments ago. The BSI Manufacturing Index came in slightly better than expected and printed a reading of -4.6 instead of the consensus forecast of -6.2. On the other hand, the Tertiary Industry Activity report showed a 1.1% decline in January, which is much worse than the 0.1% slide that was predicted.
Meanwhile, the BOJ monetary policy meeting minutes revealed that the BOJ may decide to buy bonds with longer remaining maturities if further easing is needed. Hmm… Could that be the BOJ’s next move? We’ll just have to wait and see!
Who’s the loser now? The yen inched higher across the board yesterday when rumors about a BOJ Deputy candidate hinted that Shinzo Abe might encounter a roadbump on his easing plans. USD/JPY dropped by 28 pips while EUR/JPY fell by 42 pips.
Around the early London session yesterday rumors circulated that Kuoko Iwata, a candidate for BOJ Deputy, might not get as many nods from the parliament as Hiroshi Nakaso, candidate for the second BOJ Deputy spot and Haruhiko Kuroda, candidate for BOJ Governor.
As it turns out, the parliament isn’t liking some of Iwata’s plans, which includes separating the BOJ from the government. If Iwata doesn’t get the parliament’s approval, then Abe and Kuroda might have to wait a bit longer before they can go full steam on their easing plans.
The economic board is empty in Japan today so continued talks about the nominees could continue to drive the yen’s price action today. Also keep an eye out for other major reports coming our way including the U.S. retail sales.
The yen was able to keep its losses to the dollar to a minimum as USD/JPY ended just 4 pips higher at 96.03. Against the euro, it performed much better, snatching 66 pips away from the shared currency to take EUR/JPY to 124.43.
No major reports on tap today, but take note - the lower house of Japan’s parliament will decide today on the nomination of Haruhiko Kuroda for Bank of Japan governor. Likewise, they’ll be voting on whether to approve Kikuo Iwata and Hiroshi Nakaso as his wingmen/deputy governors.
Seeing as all three of these guys have promised to take bold steps towards hitting the BOJ inflation target of 2%, the yen could come under selling pressure today. Stay on your toes, fellas! We might be in for a wild ride on the yen pairs!
USD/JPY may have exhibited a lot of volatility yesterday, but the pair still generally traded sideways. The pair started the Asian trading session at 96.03, made an intraday low at 95.68, soared to 96.60, and then closed the day barely changed at 96.09.
The only piece of economic data release from Japan was the revision on its Industrial Production report for the month of January. It showed that production only actually rose 0.3%, and not 1.0% as the market had initially estimated. While the revision was huge, the report barely had an effect on the yen’s price action.
Nothing on Japan’s economic cupboard today, but I think we still could see quite a lot of movement as traders start closing out their positions before they head out for the weekend. Be careful out there today!
After a bit of consolidation above 96.00, USD/JPY crashed all the way down to a low of 95.07 on Friday as a couple of U.S. reports came in worse than expected. The yen also managed to gain against most of its counterparts, such as the euro and pound, before the week came to a close.
As it turns out BOJ deputy governor nominee Iwata was finally able to secure his post as he was able to garner enough support from Japanese lawmakers. The yen’s recent rally could be explained by profit-taking as traders decided to wait for more clues from the BOJ officials before pushing the yen pairs in either direction.
There are no major reports due from Japan this week as traders will probably be on their toes for any remarks from the new BOJ team comprised of the doves Kuroda at the head and Iwata as his deputy. Stay on your toes as well!
Talk about a change of heart! After gapping down to start the week, EUR/JPY and GBP/JPY recovered yesterday, nearly filling the gap. EUR/JPY closed 101 pips higher at 123.14, while GBP/JPY ended at 143.73, up 104 pips on the day.
Yen pairs gapped down to start the week because of a wave of risk aversion sparked by the Cyprus situation. But now that concerns have died down a bit, traders have been a little more trigger happy and put back their moolah in higher-yielding currencies. In any case, keep close tabs on this pending situation, as it will have a direct effect on risk sentiment and on yen price action.
Like peanut butter and jelly, there’s just no denying the chemistry between risk aversion and the yen in yesterday’s trading. The Asian currency finished higher against all of its counterparts as concerns surrounding Cyprus continued to mount.
USD/JPY finished 20 pips lower at 95.03 while EUR/JPY was down 64 pips from its opening price at 122.49.
No reports are due from Japan today as banks are closed for the Vernal Equinox Day. However, I don’t think we’ll miss any action from the yen. Top-tier events are scheduled for the euro and the dollar today. If they end up fueling risk aversion even further, we may just see the yen continue its rally!
Risk was on but the yen’s game was totally off! It didn’t put up a fight at all and ended up losing massive pippage against other currencies. USD/JPY rose 102 pips to land at 96.05 while EUR/JPY surged 181 pips to end at 124.31.
Aside from having to deal with a broad-based risk rally, the yen had to combat issues on the domestic front as well. It seems as though one of the reasons traders dumped the Japanese currency was because they had been anticipating boldly dovish announcements from BOJ Governor Haruhiko Kuroda’s maiden speech today.
Remember, Kuroda has vowed aggressive actions in the past. Some say he may reveal plans to buy longer term bonds and an early start to open-ended asset purchases. If he does fulfill his promises and drop the bomb, it could lead to a massive yen selloff.
However, it looks like y’all will have to watch the news closely because we don’t have a set time for the speech. Stay on your toes, folks!
The yen was king of the forex hood yesterday as a not-so-dovish speech by the new BOJ head honcho inspired profit-taking on the yen pairs. USD/JPY crashed by around 150 pips to the 94.50 area while EUR/JPY wiped out most of its intraweek gains and closed at 122.07.
I gotta admit, economic reports from Japan didn’t make it easy for the yen bulls. Both the trade balance and industries activity reports came in way weaker than market players had expected, which was probably why more traders had expected Haruhiko Kuroda, the new BOJ Governor, to sound dovish in his first speech yesterday.
But the yen bears would have to wait a little longer! Kuroda was as tight-lipped as Bernanke as he avoided any direct comment on the BOJ’s exact short-term plans. Analysts believe that we’ll know more about the what the BOJ plans to do in two weeks when Kuroda conducts his first monetary policy meeting.
No reports scheduled from the Land of the Rising Sun today, so keep an eye out for possible end-of-fiscal-year profit-taking and risk sentiment plays!
While other major currencies exhibited extreme highs and lows, the Japanese yen simply moved sideways last Friday. USD/JPY, for example, started the day at 1.0436 and ended the U.S. trading session barely changed at 1.0446.
No data was released, but this week, we’ve got a few tier 2 reports that could possibly move the yen. On Wednesday, the country’s retail sales report will be published. It’s going to come out at 11:50 pm GMT, and it is projected to show a 0.9% increase, up from the previous month’s 1.1% decline.
On Thursday, Japanese inflation and employment data will be the focus. Both the Tokyo and National Core CPIs are expected to be at -0.6% in March while the country’s unemployment rate is still probably at 4.2%. There’s also the preliminary Industrial Production report. It’s forecasted to show a -1.0% reading, opposite the 5.0% increase seen the month prior.
What a start for the yen! The yen blew out the competition, as it posted gains across the board. What caused the yen’s rally yesterday?!
With the end of the Japanese fiscal year coming to a close on March 31, Japanese subsidiaries are sending back moolah to the motherland to help window dress their holding companies. This means that whatever cash was abroad has to be converted into Japanese yen, which drives up demand for the currency.
No biggies lined up from Japan but keep an eye out of risk sentiment, as that will most likely prove to be the most influential theme affecting the yen today.
The Japanese yen suffered a bitter defeat in yesterday’s trading session as it mostly lost against the other majors. USD/JPY, for instance, climbed to 94.51 after it had opened the Asian trading session at 94.13. Meanwhile, EUR/JPY rose to 121.53 from 120.99.
It appears that the uncertainty surrounding Kuroda’s future monetary policy is starting to weigh on the yen. Kuroda has been pretty adamant about reaching the 2% inflation target, and has promised to do everything that he could to make sure that it is achieved. This suggests that Kuroda could push for more aggressive monetary policy, such as removing the limit on the BOJ’s bond purchases.
No data was released from Japan yesterday and today’s calendar also doesn’t have any red flags. With the current Cyprus insolvency drama, I still think the yen could be subjected to a lot of volatility today. Keep a close eye on price action, negative developments in the euro zone could trigger risk aversion and lead to a rally in the low-yielding yen.
When risk aversion is in play, you can almost always be sure that the yen would get a lot of lovin’! As concerns about Cyprus heightened, demand for the Asian currency also picked up. Consequently, the yen finished higher against all of its major counterparts.
USD/JPY closed 9 pips lower at 94.42 while EUR/JPY was down at 120.60 after opening at 121.55.
Of course, it also helped that Prime Minister Shinzo Abe sounded not-so-dovish yesterday. He implied that he is satisfied with the recent weakness in the yen. Heck, some market junkies are even speculating that the government could soon take it easy on weakening the yen when he said that import prices in Japan are rising while wages are not.
The yen could continue is rally if we hear bad news from Europe as well as if Japan’s retail sales report top expectations. Due in a few minutes at 11:50 pm, the report is seen to print an increase of 0.9% in consumer spending.
Looks like speeches just ain’t cutting it anymore, Mr. Kuroda! Though the new BOJ head honcho gave another speech last week, the yen pairs ended up all over the charts late last week. USD/JPY and EUR/JPY ended up with near dojis in the last days of trading even though reports were released in Japan.
The lack of pessimism in the euro region and mixed Japanese data influenced the yen pairs’ price action during the last trading days of the week. What’s notable though, is the yen’s lack of reaction towards the new BOJ head’s bearish speeches.
Kuroda once again mentioned the BOJ’s 2% inflation target and reiterated the bank’s commitment towards the goal. Unfortunately, traders are getting tired of the same tune and are now looking for action and results.
Will the BOJ deliver this week? Aside from the NFP-related data from the U.S., investors will keep close tabs on the BOJ’s monetary policy decision on Thursday. Market geeks are expecting concrete plans and goals from the BOJ this week. While we’re waiting for the central bank though, you can read detailed reports on why the Tankan manufacturing and non-manufacturing data both missed expectations a couple of hours ago.
Way to go, little one! The Japanese yen rallied against its rivals during yesterday’s trading as USD/JPY edged close to the 93.00 handle. Will it be able to hold on to its recent gains?
Earlier during yesterday’s Asian session, Japan printed its Tankan survey results which showed a bit of improvement in the Japanese economy. The manufacturing component rose from -12 to -8, slightly below the expected -7 reading, while the non-manufacturing component rose from 4 to 6, still below the consensus at 8.
There are no top-tier reports due from Japan today, which suggests that the yen could move mostly on market sentiment. Be mindful of potential positioning ahead of Thursday’s BOJ interest rate decision though!
Unfortunately, the Japanese yen was unable to keep up its stellar performance yesterday. It actually lost versus the U.S. dollar and gave up 13 pips. USD/JPY opened at 93.32 and then closed the day at 93.45.
The only report released yesterday was the Average Cash Earnings report. It showed that the total employment income received by workers declined 0.7% year-on-year. It was lower than both the forecast and the previous month’s figure.
No data on the docket today, but we still could see some movement from the yen as traders start to price in their expectations for the upcoming BOJ rate statement on Thursday. Also be extra careful during the U.S. session. The ADP employment change is scheduled to come out, which could indirectly affect the yen’s movement.
Oh, I bet yen traders are on the edge of their seats waiting to hear what the BOJ has to say! After crashing by more than 50 pips during the Asian session, USD/JPY moved sideways between 92.75 and the 93.00 handle. Which way could it break out?
The BOJ is set to give its monetary policy decision anytime within today’s Asian session, as traders are counting on Kuroda and his men to unveil their “bold quantitative and qualitative” easing measures. During their recent speeches, the head policymakers talked about the possibility of scrapping the bank note rule, which basically implies that there would be no more limit on total government asset purchases. This would give the central bank wider scope for further easing later on.
Do stay tuned for the actual announcement as the BOJ’s stance could determine yen price action for the rest of the day. Analysts say that an open-ended easing program would be extremely bearish for the Japanese yen while a mere extension of bond maturities might end up bullish for the currency.
It’s a bloodbath! No thanks to the BOJ’s interest rate decision, the Japanese yen took a major hit against all the major currencies yesterday. USD/JPY, for instance, rallied more than 350 pips to close the day at 96.20. Meanwhile, EUR/JPY surged 500 pips to end at 124.44.
After many weeks of anticipation, new BOJ Governor Haruhiko Kuroda finally pulled the trigger on a more aggressive monetary policy. In his statement yesterday, Kuroda said that the central bank would double its monthly bond purchases to 7 trillion JPY from 3.4 trillion JPY. In addition, Kuroda also said that the central bank plans to hit its 2% inflation target by 2015.
With the BOJ decision over, many of you are probably thinking that the yen will probably take a break from all the price action madness. Unfortunately (or perhaps fortunately?), the U.S. is set to release its jobs report later tonight. It is a major market mover that will most likely have a huge effect on the yen’s movement. The jobs report is scheduled to publish at 12:30 pm GMT later.
Who needs economic data when the BOJ basically just told the markets not to buy the yen for the next two years? The yen continued to weaken against its counterparts despite the absence of major data from Japan. USD/JPY jumped by another 159 pips while EUR/JPY rocketed by a whopping 275 pips.
Last Friday the BOJ monthly report was released around the same time as Japan’s leading indicators. The leading indicators data clocked in at 97.5% instead of the expected 97.2% rate so the yen bulls should’ve been happy.
Unfortunately for the bulls, the yen bears barely paid attention to it. In fact, many traders who were waiting for the big BOJ announcement used the last day of the week to catch up to the yen selloff.
When will the yen bears catch a breather? Since Japan’s weaker-than-expected current account data is the only major news report scheduled for the week, I don’t see the yen changing its tides anytime soon. If you’re bent on trading Japanese reports though, then you could wait for the BOJ’s meeting minutes tomorrow at 11:50 pm GMT as well as the core machinery orders data scheduled on Wednesday.