Countercurrency flows dictated the yen’s price action last week.
Can this week’s potential catalysts inspire one-directional trading for the safe haven?
Here are events you need to know about if you’re trading the yen this week!
Lower-tier economic releases
- Leading index (May 12, 5:00 am GMT) point to a weakening from 91.7% to 84.3% in March
- Current account surplus (May 12, 11:50 pm GMT) could tighten from 2.38T JPY to 1.29T JPY
- Economy Watchers Sentiment (May 13, 5:00 am GMT) to dip from 14.2 to 10.1 in in April?
- Preliminary machine tool orders (May 14, 6:00 am GMT) last printed a 40.8% decline in March
- Annual PPI (May 14, 11:50 pm GMT) could see a steeper from (from -0.4% to -1.4%) in April
Market risk appetite
- Updates on the number of coronavirus cases, the governments’ responses, and progress on economies that are reopening could influence demand for safe havens like the yen
- Top-tier releases like U.S.’ CPI and retail sales, U.K.’s GDP, Australia’s jobs, and China’s data dump can also affect risk taking
- Stochastic is flagging JPY’s “overbought” conditions against USD
- Williams %R believes JPY is “oversold” against AUD, CAD, and NZD on the daily time frame
- JPY is still mostly bullish, though it’s trading below the 50 SMA against NZD, CAD, and AUD
- The yen has seen the most volatility against AUD, NZD, CAD, and GBP in the last seven days
Missed last week’s price action? Read JPY’s price recap for May 4 – 8!