Wham, bam, thank you risk aversion! Thanks to the investors’ flight out of the emerging market currencies yesterday, demand for the low-yielding yen received a boost, enough for the yen to show small gains against the euro, pound, and the Aussie.
Japan didn’t print any economic report yesterday, but aversion to the emerging market currencies propped up demand for low-yielding currencies like the yen. As a result, major yen currency pairs like USD/JPY, EUR/JPY, and even GBP/JPY had trouble popping to new notable highs.
Will the yen continue to dance to the markets’ risk appetite today? No data is scheduled for release from the Land of the Rising Sun today, so y’all better keep close tabs on the demand for the low-yielding currencies!
What a massive rally! The lower-yielding Japanese yen took advantage of risk aversion in the markets, pushing USD/JPY down to the 97.00 handle and EUR/JPY below the 130.00 mark. Can the yen hold on to its gains today?
There were no economic releases from Japan yesterday, which suggests that the yen’s rally was mostly a result of risk sentiment. Apparently, the ongoing conflict in Syria is making a lot of traders nervous about a potential military strike in the region, which would then limit oil supply and have negative effects on global growth.
Japan’s economic schedule is still empty for today, leaving the yen vulnerable to market sentiment once more. With that, make sure you keep close tabs on any updates regarding the situation in Syria. Stay on your toes!
It looks like the yen’s glory days are over. After three consecutive days of gains, the yen finally gave way and let the dollar win for once. USD/JPY began the day at 97.08 and closed the day considerably higher at 97.74.
Earlier today, data from Japan disappointed. The retail sales report showed a 0.3% decline for the month of August, which was much worse than the flat reading initially expected and last month’s solid 1.6% gain.
Later today, we’ll be treated to several tier 2 data, namely, household spending, unemployment, inflation, and industrial production. The forecasts are as follows:
SPLAT! Except against the euro, the yen fell against its higher-yielding counterparts as appetite for risk improved. USD/JPY, GBP/JPY, and AUD/JPY showed gains while EUR/JPY ended the day in the red due to weak euro zone reports.
Japan’s major economic reports weren’t released until a few hours ago, so the yen’s price action was probably more influenced by risk appetite than Japanese data. As I mentioned in my other updates, appetite for risk took a positive turn yesterday as worries over Syria’s conflict subsided a bit.
If you think that Japan’s data will rule the yen’s price action today, then you should know that Japan’s manufacturing PMI came in better-than-expected (52.2 vs. 50.7) while Japan’s core CPI and unemployment rate also surprised to the upside with the jobless rate falling from 3.9% to 3.8%. Household spending and preliminary industrial production missed expectations though, while Tokyo’s CPI came in as expected (0.4%).
The only report that hasn’t been released this week is Japan’s housing starts numbers at 5:00 am GMT. The report doesn’t usually influence the yen’s price action for long, so you might want to look at risk sentiment too!
Consolidation is the name of the game yo! Yen pairs moved mostly sideways on Friday yet the Japanese currency still managed to sneak in some gains against the pound and the Aussie. GBP/JPY edged down to a low of 151.68 while AUD/JPY dipped to 87.23.
Data from Japan came in mixed, with the jobless rate beating expectations and the industrial production figure falling short. The unemployment rate in Japan fell from 3.9% to 3.8% while industrial production posted a 3.2% increase, lower than the estimated 3.9% growth. Meanwhile, inflation reports continued to show improvements over the previous month’s figures, as the Tokyo core CPI rose by 0.4% while the national core CPI posted a 0.7% climb.
Earlier today, Japan reported a flat reading for its capital spending report in Q2 2013. This was better than the estimated 2.0% decline and the previous quarter’s 3.9% slide. There are no other reports due from Japan for the rest of the day.
The big event for the yen this week is the BOJ monetary policy statement scheduled on Thursday. Although no monetary policy changes are expected for now, the accompanying statement could set the tone for yen trading in the near term. Make sure you do your research if you plan to trade this event!
KA-POW! The yen took a beating against its higher-yielding counterparts yesterday thanks to an uptick in risk appetite. USD/JPY jumped by 94 pips while EUR/JPY, GBP/JPY, and AUD/JPY also showed notable yen weakness.
Japan’s better-than-expected monetary base numbers were released just a few hours ago, so it’s more likely that China’s surprisingly positive manufacturing PMI numbers was what spurred on the Asian markets and boosted risk appetite in the early trading sessions.
The Land of the Rising Sun is due to print its average cash earnings data at 1:30 am GMT, which will leave a lot of room for yen speculators to trade the currency in either direction in the later trading sessions. Will the yen erase yesterday’s moves or was yesterday’s price action a start of a dominating trend this week?
Talk about getting stuck! After its sharp slide in the previous day, the Japanese yen stayed mostly in consolidation during yesterday’s trading. USD/JPY struggled to break above the 99.50 level while EUR/JPY moved sideways around 131.00. Will the yen get its chance to bust out today?
Data from Japan was weaker than expected yesterday, but the bleak figures didn’t seem to be enough to result in more losses from the yen. Average cash earnings showed a mere 0.4% uptick on a year-over-year basis, lower than the estimated 0.8% increase and the previous period’s 0.6% rise.
For now, it appears that Abe’s plans to push through with the consumption tax hike is still weighing on the Japanese currency. Although he isn’t likely to give the go signal until next month, there are speculations that this increase in taxes would weigh on spending and might end up undermining overall economic growth later on.
There are no reports due from Japan today so make sure you keep close tabs on what Abe has in mind for the consumption tax hike. Word through the forex grapevine is that he wants to implement an increase from 5% to 8% in April next year then push it up to 10% in 2015. Watch out for another yen slide if he announces plans for even higher taxes!
The yen got triple roundhouse-kicked by its major counterparts yesterday as risk appetite and weak prospects in Japan weighed on the Asian currency. EUR/JPY, GBP/JPY, and even AUD/JPY showed gains yesterday with AUD/JPY popping up by as much as 140 pips. Yikes!
Japan didn’t print any report yesterday, but optimism during the Asian session carried over to the later trading sessions. Not only that, but investors are more worried now that the relatively better-than-expected capital spending data boosted chances of an increase in sales-tax in Japan.
Let’s see if the BOJ can turn the yen’s price action around. The central bank is expected to print its monetary policy decision today. While no one is expecting any changes, market players might tune in for any hints or biases from the BOJ that might indicate additional stimulus in the foreseeable future.
Don’t miss the report if you’re trading the Asian currencies today!
The yen’s performance was as mixed as a bag of nuts, as the Japanese currency gained against the euro but lost ground to the pound and the U.S. dollar. USD/JPY traded briefly above the 100.00 mark while EUR/JPY slipped from a high of 132.14 to a low of 131.03.
As expected, the BOJ made no changes to monetary policy in its interest rate statement yesterday. Although Governor Kuroda acknowledged that the Japanese economy is starting to recover, he also stated that the central bank is ready to act if Prime Minister Abe’s proposed sales tax increase starts hurting growth. Most market participants interpreted this as a sign that the BOJ still has a few easing moves up its sleeve, putting the yen on weaker footing.
Only a couple of minor reports are on Japan’s economic agenda for today. These are the BOJ monthly report and the leading indicators data, which is expected to show a 107.9% figure. With that, brace yourselves for another mixed performance from the Japanese yen unless risk sentiment provides a clearer direction for the day. Good luck!
The yen was king of pips last Friday as an optimistic BOJ report and a weak U.S. data weighed on USD/JPY, EUR/JPY, and many other yen crosses. How did that happen?!
The yen got a good start in the Asian session when the BOJ’s monthly report revealed the central bank’s optimism over Japan’s growth prospects. In fact, it’s even directly hinting that Japan’s economy is “recovering moderately!”
The yen bulls’ party heated up around the U.S. session when the big NFP report in the U.S. turned out to be a big disappointment. This prompted a huge wave of profit-taking on USD/JPY that carried other high-yielding yen crosses along with it.
Let’s see if the yen will go for two today. A few hours ago Japan released its slightly worse-than-expected current account and final GDP numbers. It’s also due to print its consumer confidence numbers at 5:00 am GMT, followed by the economy watchers sentiment at 6:00 am GMT.
Last but not the least, the BOJ’s meeting minutes is on tap at 11:50 pm GMT. The central bank didn’t make any policy changes in its last meeting, so we might not see any fireworks around the report’s release.
The yen joined the Greenback in the losers’ table yesterday, as the Japanese currency was outpaced by all of its major counterparts. EUR/JPY soared above the 132.00 handle while GBP/JPY reached a high of 156.64. What’s causing the yen’s selloff?
Data from Japan was mostly weaker than expected yesterday, as the final GDP reading was revised up from 0.6 to 0.9% for the second quarter of this year, lower than the estimated 1.0% reading. Aside from that, the final GDP price index, which measures the change in prices of the goods and services included in the GDP computation, posted a 0.5% decline. This is weaker than the estimated 0.3% drop, hinting that deflation might still be a problem for Japan.
Earlier today, Japan printed its tertiary industry activity index, which showed a 0.4% decline in the total value of services availed by businesses for July. This decline in spending, which follows the previous month’s 0.5% drop, hints that businesses are not so confident with their economic outlook.
Meanwhile, the freshly released BOJ monetary policy meeting minutes contained no surprises, as the report highlighted the recent improvements in Japan and the global economy but indicated that the central bank is ready to add stimulus if needed.
Later on, Japan is set to hold its 30-year bond auction and release its preliminary machine tool orders data. Although these events aren’t likely to spark huge waves across yen pairs, do keep an eye out for any additional volatility that these may cause.
It’s a breach! USD/JPY finally broke above 100.00 yesterday, which caused a ripple effect on the other yen crosses. What the heck brought that on?!
As I mentioned yesterday, the BOJ minutes didn’t do the yen any favors as there were no surprises from the central bank. It also didn’t help that risks of a military strike on Syria had decreased, which inspired risk appetite in the markets. Meanwhile, Japan’s economic reports, which includes improvements in the preliminary machine tools orders and BSI manufacturing index, were mostly shrugged off by investors.
Only the core machinery orders data at 11:50 pm GMT is scheduled from the Land of the Rising Sun today. The data is expected to show a 2.5% growth after declining by 2.7% in the previous month. Also, and don’t forget to pay attention to risk sentiment as it could still drive the yen crosses today!
The Japanese yen must’ve gotten tired of being called a loser so it put up a strong fight in yesterday’s trading. As a result, USD/JPY tumbled back below the 100.00 mark while EUR/JPY sank below 133.00. Can the yen keep up its gains or will it get bullied again?
Data from Japan was better than expected yesterday as the BSI manufacturing index climbed from 5.0 to 15.2 for the current quarter, outpacing the consensus at 7.2. This index is typically considered as an indicator of business outlook and future business conditions, and a positive reading indicates optimism among the manufacturers included in the survey.
Today’s release of the core machinery orders data turned out to be a disappointment though, as the report showed a 0.0% reading instead of the estimated 2.5% increase. This means that machine orders stayed flat in July, which suggests that production could stall in the coming months.
No other reports are due from Japan for the rest of the day so make sure you keep tabs on risk sentiment to figure out where the yen could be headed!
The yen was the king of pips yesterday as it posted significant gains against the dollar, euro, and the comdolls. Heck, USD/JPY was swiftly rejected at 100.00! What the heck brought that on?!
Well, it was a triple combo of squeezes in technical levels, risk aversion, and yen inflows. Notice that USD/JPY and EUR/JPY got rejected at major resistance areas (100.00 and 133.00 respectively). It also helped that economic reports from around the globe were dismal.
It started with a weak AU jobs data, followed by a miss in the euro zone’s reports, a dovish ECB speech and doubts over a Fed Septaper by next week. Last but not the least, word on the hood is that Japanese investors are dumping foreign bonds, which helped boost the yen’s inflows.
No major data due from the Land of the Rising Sun today, so you could pay attention to other major economies for hints on what could move the markets this week.
Heck yen! Fans of the Japanese currency put their game faces on last Friday, allowing the yen to power through against its major rivals. USD/JPY fell below the 99.00 handle while EUR/JPY traded closer to the 132.00 mark. Can the yen hold on to its gains?
Japan’s industrial production report turned out better than expected, as the reading was revised from 3.2% to 3.4% for July. Aside from that, Japan’s Cabinet officials upgraded their growth forecasts for the country, saying that the recovery is picking up.
Japanese banks are on a holiday today, which suggests that there could be lower liquidity and therefore higher volatility during today’s Asian session. The first set of reports due from Japan is scheduled on Thursday in the form of its trade balance and all industries activity index. BOJ Governor Kuroda is also set to give a testimony that day and on Friday.
With no other reports due from Japan for the next few days, make sure you keep close tabs on market sentiment and currency-specific data to figure out how to trade the yen pairs!
It’s indecision time for the yen bulls and bears as the lack of Japanese data inspired mixed yen trading. USD/JPY and GBP/JPY showed small losses while both EUR/JPY and AUD/JPY finished the day with gains.
Japan didn’t release any economic report yesterday, so the markets were more gung ho about the dollar’s price action rather than the yen’s. If you remember, risk appetite and dollar aversion supported demand for the higher-yielding currencies in the early trading sessions, but positive U.S. economic reports also inspired deep retracements for the major pairs.
Will the yen have a chance at dictating its own price action today? At 11:50 pm GMT we’ll see Japan’s trade balance, which should give us clues on whether or not the yen’s value is affecting the economy’s exporters. Analysts expect to see a 0.81 trillion JPY deficit for the month of August, which is slightly higher than July’s 0.94 trillion JPY figure.
Yesterday wasn’t a good day to be a yen bull, was it? The yen was no match to the strength of its major currency rivals, as the higher-yielders managed to edge up against the Japanese currency. USD/JPY bounced back above the 99.00 mark while EUR/JPY climbed past 132.00.
There were no reports from Japan yesterday, leaving the yen at the mercy of risk sentiment. U.S. data on TIC long-term purchases also revealed that Japan was one of the largest buyers of U.S. dollars recently, as investors were drawn to the rising yields offered by U.S. securities and had to sell their yen in the process.
Japan’s economic schedule is still empty again today, which means that the yen could be sensitive to currency-specific events. Watch out for the release of the BOE meeting minutes if you’re trading GBP/JPY and the much-awaited FOMC statement if you’re playing USD/JPY. Good luck!
With the Greenback taking center stage in the markets yesterday, the low-yielding yen only played a supporting role. USD/JPY’s 108-pip fall was offset by increases in other yen crosses such as EUR/JPY, AUD/JPY, and GBP/JPY.
Only Japan’s trade balance report was released yesterday. The data revealed a deficit of 0.79 trillion JPY, which is better than the previous month’s 0.91 trillion JPY deficit.
But it wasn’t Japan’s data that moved the yen pairs! As I mentioned in my USD update, the Fed surprised the markets by not changing anything with its bond purchases. This caused a USD/JPY slide but a rally in other yen crosses.
Bank of Japan’s Kuroda is scheduled to speak some time today. The BOJ hasn’t really been making any changes in its policies either, so it would be interesting to see if Kuroda can cause volatility with his speech.
Just when it seemed the yen was having a pretty good day, it gets knocked off its feet! USD/JPY dipped to a low of 97.88 during the Asian session, before making a sudden turnaround and rallying towards the 99.50 level. What the heck happened?!
Word through the forex grapevine is that the BOJ is considering adding to its massive stimulus program, and these easing speculations were enough to push the Nikkei higher and the Japanese yen lower. A BOJ official was quoted saying that the central bank is worried about the negative impact of external economic threats and Abe’s proposed sales tax. Aside from that, BOJ Governor Kuroda also highlighted how their current easing efforts are lifting the Japanese economy and that they are likely to continue or expand this program if necessary.
There are no reports due from Japan today but y’all should watch out for another speech by Kuroda if you’re trading the yen pairs. If he emphasizes the effectiveness of their QE program and reiterates that the BOJ can afford to add stimulus, the yen might continue to sell off!
That’s how you end a week! The yen gained against its major counterparts last Friday despite a lack of data from Japan. USD/JPY saw a 9-pip slip while GBP/JPY also fell by 28 pips. What happened to the big yen moves though?
Well, you won’t find it in an environment with little or no catalyst! As I mentioned in my other updates, the major economies barely had any economic reports released last Friday. The yen was only able to post some gains thanks to a slight risk aversion in the markets.
Of course, it also helped that Shinzo Abe and his friends are all but set to implement Japan’s additional sales tax. Word on the hood is that he’s planning to cushion the blow by adding at least 5 trillion JPY to the government’s stimulus and lowering their corporate taxes.
Japan is on a bank holiday today, so watch out for any reports that might affect risk sentiment!