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The Coronavirus scare boosted JPY to Profitsville last week. Can the bulls maintain their momentum this week?

Here are catalysts you should pay attention to:

Consumer-related reports

  • Average cash earnings (Feb 6, 11:30 pm GMT) is expected to slip by 0.1% in December after gaining 0.1% in November
  • Household spending (Feb 6, 11:40 pm GMT) could print a 1.7% decline after a 2.0% decrease in November
  • Leading indicators index (Feb 7, 5:00 am GMT) is seen to improve from 90.8% to 91.4% in December

Market risk sentiment

  • Coronavirus updates, and its impact on travel and trading activities could continue to dictate overall risk sentiment
  • Top-tier reports, such as RBA’s policy decision, Euro Zone PMIs, Lagarde’s speech, and the U.S. NFP releases, can also affect risk-taking

Technical snapshot

  • RSI is signaling that JPY is “overbought” against AUD and NZD on the daily time frame
  • Stochastic and Williams %R consider JPY as “overbought” against AUD, CAD, EUR, NZD, and USD
  • Bollinger Bands see JPY as “overbought” against NZD
  • Keltner Channels are pointing at JPY’s “overbought” conditions against AUD, CAD, and NZD

  • GBP/JPY, CHF/JPY, and EUR/JPY are “bearish but weakening” based on the 5 and 20 SMAs on the daily
  • USD/JPY, CAD/JPY, AUD/JPY, and NZD/JPY are all “bearish” against the short-term SMAs

Missed last week’s price action? Read JPY’s price recap for January 27 – 31!