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
- 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!