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Net positive domestic data and low key risk aversion pushed the yen higher last week. Can the bulls maintain their momentum this week?

Here’s a list of catalysts you should watch out for:

Mid-tier economic reports

  • Consumer confidence (Jan 29, 5:00 am GMT) is seen at 39.6 after 39.1 reading in December
  • Tokyo’s core CPI (Jan 30, 11:30 pm GMT) to maintain its 0.8% reading in January
  • Unemployment rate (Jan 30, 11:30 pm GMT) could tick higher from 2.2% to 2.3% in December
  • Industrial production (Jan 30, 11:50 pm GMT) is expected to inch 0.7% higher after a 1.0% decline in November
  • Retail sales (Jan 30, 11:50 pm GMT) could drop from 4.5% to 1.2% but annualized figures could chill from -2.1% to -1.6%

Market risk sentiment

  • Central bank events like the FOMC and BOE’s policy statements can affect overall market sentiment
  • Concerns over the reach and economic impact of Coronavirus can continue to push safe havens like the yen higher
  • The European Parliament is expected to approve the EU-UK Withdrawal Agreement on Wednesday and Britain is set to officially leave the EU this week

Technical snapshot

  • Stochastic considers JPY as “overbought” against CAD and EUR on the daily time frame
  • Williams %R and Bollinger Bands signal JPY’s “overbought” conditions against AUD, CAD, EUR, and NZD

  • USD/JPY, CAD/JPY, NZD/JPY, and GBP/JPY are all “bearish” with the short-term SMAs and “bullish but weakening” on the longer-term SMAs. Watch out for retracement or reversal opportunities

Missed last week’s price action? Read JPY’s price recap for January 20 – 24!