JPY Weekly Forecast (Mar. 30 – Apr. 3)

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Japan has a couple of lowe-tier reports on tap this week! Can the yen extend its gains with this week’s potential catalysts?

Here are market events you’ll want to keep updated on:

Lower-tier economic releases

While they might not affect JPY’s intraweek trends, lower-tier reports can cause intraday volatility among the yen crosses
Average cash earnings (Apr 6, 11:30 pm GMT) could slow down from 1.5% to 0.1% in February
Household spending (Apr 6, 11:40 pm GMT) to dip by another 3.1% in February?
Core machinery orders (Apr 7, 11:50 pm GMT) expected to fall by 2.9% after a 0.3% decline in January
Economy Watchers sentiment (Apr 8, 5:00 am GMT) could drop from 24.6 to 19.0 in March
Bank of Japan (BOJ) Governor Kuroda will give a speech (Apr 9, 12:30 am GMT) in Tokyo
Consumer confidence (Apr 9, 5:00 am GMT) might dip from 38.4 to 34.2 in March
Annualized PPI (Apr 9, 11:50 pm GMT) could fall by 0.7% after a 0.4% dip in February

The number of COVID-19 cases globally as well as the response of governments will continue to affect risk sentiment in the markets and demand for the low-yielding yen
OPEC’s meeting later this week can also influence risk appetite in the markets
Central bank activities, such as RBA’s policy decision and the Fed’s meeting minutes, can cause significant intraday volatility if we see surprises
Euro Zone ministers are expected to start considering proposals for a coordinated action against the coronavirus pandemic

Stochastic believes JPY is “overbought” against CHF and “oversold” against GBP on the daily time frame

JPY is still bullish against most of its major counterparts
JPY is below the 50 and 200 EMAs against USD and could see the same conditions against CHF

JPY has been most volatile against AUD, NZD, CAD, and EUR in the last seven days