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Will we see another volatile week for the yen? Check out the catalysts that might affect the safe haven!

Consumer-related reports

Japan won’t be printing top-tier reports this week, but it will release consumer-related reports that Bank of Japan (BOJ) Governor Kuroda and his team could be interested in.

The consumer confidence data is up tomorrow at 3:35 am GMT and analysts expect a bit of dip from 42.9 to 42.8 for the month of December.

The annualized average earnings (Jan. 9, 12:00 am GMT) is next with market geeks seeing a 1.3% increase in November after seeing a 1.5% uptick in October.

Household spending (Jan. 10, 11:30 pm GMT) will follow. Traders expect to see a 0.2% improvement after a 0.3% dip in October.

Last but not the least is the Economy Watchers sentiment report scheduled on Friday at 5:00 am GMT. Analysts are predicting a dip from 51.0 to 50.3 in December.

Market bees are buzzing about the BOJ possibly trimming its inflation outlook for the next two years, so significant hits or misses among the consumer-related reports could cause some intraday volatility for the yen.

Overall risk sentiment

Yen traders were all over the place last week over speculations that a slowdown in Chinese demand are already significantly affecting big American companies like Apple and could affect even more businesses in and out of the U.S.

Sentiment turned, however, as soon as the U.S. and China started printing optimistic remarks over their trade negotiations.

Of course, it didn’t hurt that Fed head honcho Powell hinted that he is “prepared to adjust policy quickly and flexibly” as he’s “listening sensitively to the message that markets are sending.

This week, the U.S. and China are having mid-level talks in Beijing. The sixth round of negotiations is spreading good vibes ahead of the 90-day trade truce deadline due in March.

Meanwhile, the U.S. government is on its third week of partial shutdown. Word around the hood is that the Donald might declare national emergency to build his wall if talks continue to stall.

Then again, the POTUS has shown some signs of compromising. He recently said that

“The barrier, or the wall, can be of steel instead of concrete, if that helps people…”

Analysts speculate that Trump might be compromising on the design so that the Dems could avoid calling it a “wall.” Whatever works, eh?

Keep your eyes glued to the tube for updates on the U.S. government shutdown, the U.S.-China trade war negotiations, and even remarks made by Fed officials in case they inspire another active week for the yen crosses!