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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

Market risk sentiment

  • 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

Technical snapshot

  • 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

Missed last week’s price action? Read JPY’s price recap for March 30 – April 3!