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The yen lost pips to its counterparts last week as U.S.-Iran tensions faded. What catalysts can move the safe haven this week?

Japan’s production-related reports

  • Preliminary machine tool orders (Jan 15, 6:00 am GMT) printed at -37.9% in November after a -37.4% reading in October
  • Core machinery orders (Jan 15, 11:50 pm GMT) could accelerate by 3.1% after dropping by 6.0% in October
  • Producer prices could inch 0.1% higher in December (vs. 0.2% growth in November) while annualized growth could accelerate from 0.1% to 0.5%

Kuroda’s speech (Jan 15, 12:30 am GMT)

  • Bank of Japan (BOJ) Governor Kuroda is set to give brief remarks at a BOJ branch managers’ meeting in Tokyo
  • In his latest speeches Kuroda maintained that the BOJ “will not hesitate to take additional easing measures” if momentum towards 2.0% inflation goal is threatened

Market risk sentiment

  • Chinese Vice Premier Liu He is expected to visit Washington on Jan 13 – 15 to sign China’s “phase one” trade deal with the U.S.
  • China and the U.S. have already agreed to hold semi-annual talks to settle disputes and reforms
  • U.S.’ CPI (Jan 14, 1:30 pm GMT) and retail sales (Jan 16, 1:30 pm GMT) reports could also affect market risk appetite

Technical snapshot

  • Stochastic flags JPY as “oversold” against CAD, CHF, and USD

  • ALL major JPY pairs are trading above short AND long-term SMAs on the daily time frame

Missed last week’s price action? Read JPY’s price recap for January 6 – 10!