Look who’s gaining more muscle! The yen bears got busy at the start of the week as risk appetite dragged on the low-yielding yen. Heck, USD/JPY, EUR/JPY, GBP/JPY, and even AUD/JPY all ended the day in the green yesterday!
Japan’s Tankan manufacturing and non-manufacturing indices both came in better-than-expected yesterday, which is probably one of the reasons why Nikkei had extended its gains. Unfortunately, the optimism also gave many investors the excuse to dump the low-yielding yen.
Get your thinking hats ready because in a few minutes the average cash earnings will be released. Analysts estimate a slightly more positive growth for the month of May, so watch your yen pairs closely for any spikes as soon as the report is released. No other news is set to come out from Japan, so you might also want to pay attention to the major news in the London and U.S. sessions that might affect the demand for low-yielding currencies.
The yen just couldn’t get it together! It gave up more ground to the dollar yesterday as USD/JPY flew past the 100.00 handle, closing 106 pips higher at 100.65. Meanwhile, against the euro, it settled with a 48-pip loss as EUR/JPY finished higher at 130.59.
There weren’t any major economic reports released from Japan. It would seem that the yen just fell victim to the dollar’s strength and the massive rally on USD/JPY spilled over other JPY pairs.
Our forex calendar still doesn’t have anything on the docket for the Asian currency today. With that said, be sure you keep tabs on market sentiment! Remember that the yen usually does well when risk aversion is in play.
After serving as the market’s whipping boy for several days, the Japanese yen surprised the markets yesterday by erasing some of its losses. USD/JPY began the day at 100.65 but closed the New York session at 99.86. Meanwhile, EUR/JPY started at 130.59 but ended the day at 129.94.
The Japanese yen gained as the Bank of Japan (BOJ)'s massive quantitative easing program comes under increased examination. According to Liberal Democratic Party Secretary General Shigeru Ishiba, the BOJ cannot simply just keep printing money to support the economy indefinitely. This puts the BOJ between a rock and a hard place, as it needs to achieve the 2% inflation target but also appease the government.
In any case, it’s hard to believe whether yesterday’s move will persist. After all, the yen has been on a long-term downtrend, and it’s going to take more than a few comments trigger a reversal. For now, I think it’s better to err on the side of caution and consider yesterday’s move as a mere retracement.
The yen may have lost ground to the dollar, but it more than made up for it with its performance against the euro and the pound. USD/JPY climbed 11 pips higher, while EUR/JPY fell 86 pips and GBP/JPY lost 185 pips.
We didn’t really hear anything new from BOJ Governor Haruhiko Kuroda’s speech. According to the central bank top dog, the recovery is under way, inflation should pick up, and the BOJ’s stimulus efforts are working their magic. That’s pretty much consistent with what we’ve been hearing from Japanese policymakers as of late, and it seems to support their decision to keep monetary policy unchanged for now.
Nothing on the economic docket from Japan today. In the meantime, set your eyes to the west, where the U.S. is scheduled to publish its much-anticipated NFP report. Good luck, fellas!
With USD/JPY surging higher, the yen found itself struggling against the rest of its major counterparts. USD/JPY is now trading above 101.00, while EUR/JPY is back at around the 130.00 mark.
The yen sell-off took place because of the better than anticipated NFP report, which helped buoy USD/JPY. Make sure you hit up my USD commentary for the 411 on this report.
No data scheduled to come out from Japan today, but do watch out tomorrow at 11:50 pm GMT, when the latest monetary meeting minutes will be released. If there’s even a hint of discussion of more aggressive moves from the Bank of Japan, it could send yen crosses spiking higher once again.
Thanks to a slight improvement in risk appetite, many of the yen pairs ended the day in the green. USD/JPY was an exception though, as it slid by 14 pips by the end of the day. Did the yen’s action have anything to do with Japan’s economic reports?
It’s possible. Yesterday the Land of the Rising Sun published its current account and economic watchers’ sentiment reports, both of which came in weaker-than-expected. Still, the yen traders might have been watching risk sentiment more closely than Japan’s data, so the reports might have had a limited impact.
The yen action could level up today when the BOJ releases its monetary policy meeting minutes at 11:50 pm GMT. Many analysts aren’t expecting anything new from the BOJ, but you still might want to be at the edge of your seats in case the BOJ uses its opportunity to further talk down the yen.
If you’re not into major reports though, you can still trade the preliminary machine tools orders up at 6:00 am GMT and the tertiary industry activity also at 11:50 pm GMT. In any case, make sure that you place stop losses appropriate for yen pairs if you’re planning on trading the yen today!
It’s a stalemate! The yen put up a good fight against the U.S. dollar in yesterday’s trading, as USD/JPY struggled to hold on to the 101.00 handle. Against the euro and pound, the yen managed to pocket pretty good gains. What’s in store for yen pairs today?
There were no major reports released from Japan recently but medium-tier data seems to be hinting at continued weakness in the country. The machine tool orders report printed a 12.4% decline for the month of June, hinting that the effects of the BOJ’s massive stimulus program could be wearing out.
However, the tertiary industry activity index released in today’s early Asian session printed a 1.2% jump, higher than the estimated 0.9% increase. This was also a decent rebound from the 0.5% decline seen in the previous period.
Consumer confidence data is due for release next, and an improvement from 45.7 to 47.2 is expected. A higher than expected figure could be positive for the yen, as it would hint at stronger consumer spending and growth later on.
The yen didn’t need any Monster energy drink to kick butt on the charts yesterday. All it needed was some bit of lovin’ from the bulls! USD/JPY closed 85 pips below its opening price at 100.18 while EUR/JPY was at 129.07 after opening the day at 129.18.
Today, the BOJ is scheduled to make its monetary policy statement. At 12:00 am GMT, no changes are expected to be made from the central bank’s interest rates or its asset purchases program.
But make sure you still keep your ears open for it. If the central bank expresses its optimism on the economy and echoes the IMF’s forecasts that economic growth would continue this year, we could see the yen extend its gains!
The yen’s price action was as mixed as piña colada yesterday after the BOJ printed its latest meeting minutes. USD/JPY ended up 129 pips south of its open price while GBP/JPY finished the day with an 80-pip gain.
Thanks to a relatively stable JGB price action, the BOJ didn’t change anything with its currency monetary policy. And why would they? USD/JPY is still sitting near its recent highs!
The central bank spread some more good vibes when it also sounded upbeat about the economy, saying that it’s “recovering moderately.” It slightly downgraded its inflation forecasts though, as it’s only expecting a core inflation of 0.6% for the fiscal year ending in 2014 instead of the 0.7% uptick prediction that it had released in April.
No other biggies from Japan today except for the revised industrial production data at 4:30 am GMT, so keep an eye out for any market movers that might strongly influence the low-yielding yen’s price action!
The Japanese currency ended the week with losses against the euro and the dollar. Traders took EUR/JPY 27 pips higher and forced the pair to finish at 129.84, while USD/JPY gained 45 pips to end at 99.35. What’s up with that?
Japan’s industrial production report didn’t really do much to move the yen, even though it printed below forecasts. Output clocked in a growth of just 1.9%, which is a tick lower than the 2.0% consensus forecast.
In other news, the Bank of Japan seems to be feeling more optimistic about the economy. It recently claimed that its recovery is starting to gain momentum. If this keeps up, it might just prevent the BOJ from easing monetary policy any further, which in turn could lead to more gains for the yen.
Today, Japan is celebrating a banking holiday, so the markets may be a little thinner than usual this Tokyo session. With that in mind, you may want to stay on your toes for breakout opportunities. Good luck and happy pipping, homies!
The yen bears are back in action! Thanks to a relatively positive Chinese GDP data and weak U.S. reports, the yen was able to weaken against most of its counterparts. How did that happen?!
As I mentioned in my AUD review, China’s GDP report provided a bit of optimism across the equities markets and some high-yielding currencies. As a result, some investors who would have bought the low-yielding yen ended up buying higher-yielding Japanese equities instead.
In the forex arena, it was a downside surprise in the U.S. retail sales that dragged on USD/JPY and boosted the yen on other major yen crosses such as EUR/JPY, GBP/JPY, and AUD/JPY.
Will the yen bears go for two today? At 11:50 pm GMT the BOJ is set to print its monetary policy meeting minutes. The central bank didn’t make any changes on its last policy statement, so analysts aren’t expecting much for this release. Be careful though, as the BOJ could always use the opportunity to talk down the yen!
The yen took advantage of overall Greenback weakness, allowing USD/JPY to edge lower down the charts. After trading as high as 100.07, USD/JPYfinished the day nearly 100 pips lower at 98.98.
Earlier, the minutes of the latest Bank of Japan monetary policy meeting but as expected, there were no major surprises during the meeting. It seems that BOJ Governor Kuroda is done mixing up monetary policy this year, so may not see the central bank intervene any time soon.
For today, just watch out for Fed President Bernanke’s speech at 2:00 pm GMT. This could cause strong moves on USD/JPY, which would indirectly affect moves on other yen crosses as well. Good luck trading!
Even though the Japanese yen put up a good fight in yesterday’s trading battle, it was defeated by most of its major counterparts. USD/JPY jumped from a low of 99.04 to a high of 99.94 while GBP/JPY reached the 152.00 handle.
The latest BOJ monetary policy meeting minutes revealed that central bank officials are having trouble reaching an agreement on what to do with their current easing program. Apparently, some policymakers think that purchases of longer-term bonds is starting to have a negative effect on Japanese bonds and borrowing costs.
There are no reports due from Japan today, which leaves yen pairs vulnerable to other currency-specific events. Stay on your toes!
Rough day for the yen, as a wave of risk appetite encouraged traders to favor higher yielding currencies. By the end of the day, EUR/JPY, GBP/JPY, and USD/JPY were all trading significantly higher. Can this continue today?
Risk appetite was evident in the markets, as we saw both equities and higher yielding currencies climb. Remember, when people are feeling good and want to take on risk, this is normally bad for the yen, as market players use the yen (i.e borrow / short the yen) to fund their positions.
For today, we don’t have any hard data headed our way, so most likely risk sentiment will still be the deciding factor for price action on yen crosses. Keep an eye out for developments from other nations, as you never know what might rock the markets’ socks!
The yen’s scorecard was as mixed as a glass of Long Island Iced Tea in Friday’s trading. While USD/JPY finished the day 11 pips below its opening price at 100.35, GBP/JPY was up 25 pips at 153.28 by the end of the day’s trading.
It’s worth noting that volatility among JPY pairs was limited towards the latter part of the week. It would seem that traders preferred to stay on the sidelines ahead of the Japanese Parliamentary elections which happened over the weekend.
Results show that Prime Minister Shinzo Abe’s LDP party had a decisive win. This gives the uber-dovish Japanese leader a strong foothold in the Upper House of the Parliament which would make it easier for him to pass laws that may (or may not) be in favor of a weaker yen.
No reports are due from the Land of the Rising Sun today. With that said, keep close tabs on market sentiment and see how the market reacts to Abe’s win. Good luck!
The yen was king of pips yesterday after Abe’s LDP won Japan’s recent elections by a landslide. Why were the yen bulls so giddy over it anyway?
Well, a strong win for Liberal Democratic Party would mean that Shinzo Abe now has the upper house majority as well as 2/3 of the lower house. This is a coup for any leader as it would be easier to implement policy changes. In fact, market geeks are already betting that Abe will soon introduce changes in policies related to trade and tax after already mixing things up with Japan’s monetary and fiscal policies.
Will the yen bulls continue their domination in today’s trading? We won’t be seeing anything from the Land of the Rising Sun until 11:50 pm GMT today when it prints its trade balance data. Analysts are predicting a lower trade deficit than last month, but keep your eyes open for any downside surprises!
The yen’s performance was as mixed as the colors of Happy Pip’s shoes as yen traders reacted to a BOJ report as well as the other currencies’ price action. The Asian currency gained against the Greenback but lost to the euro, pound, and the Aussie.
Yesterday Japan’s trade balance report showed a deficit of 60 trillion JPY in June, a bit better than May’s 78 trillion JPY deficit. What caught the investors’ attention though, was the BOJ’s report stating its optimism for the economy. Not only did the central bank upgrade its economic forecasts for a third straight month in July, but BOJ’s Kuroda also expressed his optimism over a “moderately recovering” economy and said that local equities are responding well to their stimulus efforts.
Will the BOJ’s positive vibes carry over to the yen’s price action today? No biggies due from the Land of the Rising Sun, so the yen will most likely react to its counterparts’ price action once again. Be careful and good luck with your trades!
The ball was in the court of yen sellers yesterday, as the safe haven currency got no love from the markets. It sold off against the dollar and the euro, chalking up an 83-pip loss against the Greenback while losing 85 pips to the shared currency.
From the looks of it, traders simply didn’t have a reason to buy the yen against the dollar and the euro, which were both supported by upbeat domestic data. Meanwhile, Japan’s trade balance report offered the markets little to cheer about.
That being said, it looks like you’ll have to check out our economic calendar for releases from the U.S. and euro zone today if you plan on trading either USD/JPY or EUR/JPY. Both economies are expected to publish some key reports that may affect their respective yen pairs, so do make sure you tune in when they come out.
Everyone give the yen a forex high five! It just gave dominated the forex market yesterday! With USD/JPY dropping below 99.50, EUR/JPY and GBP/JPY simply followed suit and melted down the chart as well!
Earlier, Tokyo CPI figures were released and showed that inflation checked in at 0.4% for June, its highest level in 5 years. Now for most of you, you might be thinking that 0.4% ain’t too high. Nevertheless, it’s something we should pay attention to because the Bank of Japan is currently implementing aggressive monetary policies. Should inflation show signs of heating up, the BOJ may have to think twice about the size of its monthly bond purchases.
Nothing lined up for today, but make sure to keep an eye out on risk sentiment as that will most likely dictate yen trading!
The yen continued to show everyone who is the real big boss of the foreign exchange market as it rallied strongly versus other major currencies. USD/JPY, for instance, marked its second straight day of winning, falling to 98.17 from 99.19. Despite the yen’s gains, analysts are saying that the yen’s moves are simply corrective, and will not last.
Only two important events are lined up for Japan this week, and they will both happen later today. The first one is the release of the Preliminary Industrial Report. It’s anticipated to show a -1.4% figure after the previous month’s 1.9% increase.
The second one is the BOJ Governor Kuroda’s speech. As the head of the central bank, what he says will be important in determining future monetary policy. Stay tuned for this!