Partner Center Find a Broker

Risk aversion pushed the yen higher last week. Can the bulls keep their momentum given this week’s catalysts?

Here are major market themes you need to pay attention to:

Trade balance data

Lower-tier reports

  • Manufacturing PMI (Apr 23, 12:30 am GMT) could weaken further in April
  • Services PMI (Apr 23, 12:30 am GMT) last printed at 33.8
  • National core CPI (Apr 23, 11:30 pm GMT) to slow down from 0.6% to 0.4% from a year ago in March?

Overall risk appetite

  • As a popular “safe haven,” JPY gets pips when markets don’t want to take risks
  • The number of coronavirus cases, as well as policy responses from authorities can affect global market risk sentiment
  • Volatility of the U.S. dollar or commodities can also influence the yen’s price action

Technical snapshot

  • Stochastic is flagging JPY’s “oversold” status against AUD
  • JPY may be “overbought” against EUR on the daily time frame

  • The yen is still mostly bullish across the board though it could see retracements against AUD and NZD

  • JPY saw the most volatility against NZD, AUD, CAD, and GBP in the last seven days

Missed last week’s price action? Read JPY’s price recap for April 13 – 17!