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Japan is printing a bunch of economic reports this week, but yen traders will likely look at risk appetite for direction.

Planning on trading the safe-haven in the next few days?

Check out the market themes you need to know about:

Lower-tier economic releases

  • Japan bank deposits rise at a record pace as firms, households hoard cash
  • Economy Watchers sentiment (Feb 8, 5:00 am GMT) to dip from 35.5 to 32.0 in January
  • Average cash earnings (Feb 8, 11:30 pm GMT) seen improving from -2.2% to -0.7%
  • Preliminary machine tool orders (Feb 9, 6:00 am GMT) could dip from 8.7% to 7.5% in January
  • Monthly producer prices (Feb 9, 11:50 pm GMT) to slow down from 0.5% to 0.3%?

Market risk sentiment

  • The combo of relatively high U.S. Treasury yields and rallies of global equities has limited the yen’s safe-haven appeal in the last few days
  • Trump’s impeachment trial, the pace of vaccinations, and stimulus prospects in the U.S. can affect USD/JPY’s intraweek trends and influence the rest of the yen crosses

Technical snapshot

  • Daily Bollinger Bands show the yen hitting “oversold” levels against the Aussie and Loonie
  • JPY could also soon reach oversold conditions against NZD, GBP, and USD
JPY Forex Pairs Bollinger Bands from MarketMilk
JPY Forex Pairs Bollinger Bands from MarketMilk
  • Moving averages reflect the yen’s short and long-term bearish trends across the board
JPY Forex Pairs EMAs from MarketMilk
JPY Forex Pairs EMAs from MarketMilk
  • The yen saw the most volatility against the comdolls and the pound in the last seven days
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read JPY’s price recap for Feb. 1 – 5!