Trade-related improvements dragged the safe haven lower last week. See if this week’s catalysts can turn things around for the bulls!
Trade balance (Dec 17, 11:50 pm GMT)
- After three months of deficit, Japan returned to a trade surplus of 15.7B JPY from a year ago in October
- Exports fell by 9.2%, while imports also saw a 14.8% decrease for the month
- Market players see a return to deficit to the tune of 350B JPY in November
- Exports could fall by another 12.3%, while imports could see another 8.8% decrease
BOJ’s policy statement (Dec 19, Asian session)
- Last month the Bank of Japan (BOJ) kept its rates steady but hinted of “new forward guidance” that would essentially lead to more stimulus
- JPY lost pips across the board at the news
- Markets aren’t expecting policy changes from the BOJ this week after Abe recent stimulus package announcement
Market risk sentiment
- Watch the newswires closely for more details on the U.S. “phase one deal” with China
- Look out for potential profit-taking from last week’s strong moves
- PMIs in the European region can also dictate overall risk appetite
Technical snapshot
- ALL JPY pairs are “bullish” across short and long-term SMAs
- Stochastic marks JPY as “oversold” against CAD, CHF, EUR, NZD, and GBP
Missed last week’s price action? Read JPY’s price recap for December 9 – 13!
