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Japan’s economic calendar looks pretty chill, but that doesn’t mean you shouldn’t watch the yen’s price action!

Let’s look at its potential catalysts this week:

Consumer-related reports

  • Average cash earnings (Jan 7, 11:30 pm GMT) could dip by 0.2% from a year ago in November after coming in at 0.0% in October
  • Consumer confidence (Jan 8, 5:00 am GMT) is expected to improve from 39.7 to 39.6 in December
  • Household spending (Jan 9, 11:30 pm GMT) could show a 2.0% decrease in November after a 5.1% decline in October

Market risk appetite

  • ICYMI, Iraq’s parliament voted to boot out U.S. troops while Iran no longer considers itself bound by the 2015 nuclear deal after last week’s U.S. attack on a top Iran military commander
  • Watch out for potential increase in higher-yielding bets after last week’s “profit-taking”
  • Labor market numbers from the U.S. and Canada, as well as low-tier reports from the European region could also affect risk sentiment

Technical snapshot

  • JPY gained pips against ALL of its counterparts in the last 7 days
  • JPY has been most bullish against NZD and least bullish against CAD

  • Stochastic is saying that JPY is “overbought” against GBP and USD on the daily time frame

  • JPY has been most volatile against GBP, NZD, and AUD in 2019