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!
