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A risk-friendly environment dragged on the yen last week.

Can this week’s domestic data turn things around for the safe haven?

Let’s take a look of potential catalysts that might affect the yen:

Lower tier economic releases

  • BOJ’s core CPI (May 26, 5:00 am GMT) to come in flat after a 0.1% reading in March
  • Tokyo’s core CPI (May 28, 11:30 pm GMT) expected to weaken from -0.1% to -0.2% in May
  • Unemployment rate (May 28, 11:30 pm GMT) could inch higher from 2.5% to 2.7% in April
  • Industrial production (May 28, 11:50 pm GMT) may drop by 9.4% in April
  • Retail sales (May 28, 11:50 pm GMT) to plummet by another 11.4% in April?
  • Consumer confidence (May 29, 5:00 am GMT) could weaken from 21.6 to 19.2 in April

Overall risk appetite

  • Talks about the coronavirus’ infection and death rates, vaccine prospects, stimulus plans, and easing of lockdown measures can affect the demand for safe havens
  • Tensions between the U.S. and China, as well as protests in Hong Kong, can also impact the yen’s intraweek trends

Technical snapshot

  • Stochastic thinks the yen is “oversold” against NZD, AUD, and EUR on the daily time frame
JPY Forex Pairs Stochastic from MarketMilk
JPY Forex Pairs Stochastic from MarketMilk
  • Long-term SMAs point to the yen’s daily time frame uptrends weakening against the comdolls
JPY Forex Pairs Long-Term SMAs from MarketMilk
JPY Forex Pairs Long-Term SMAs from MarketMilk
  • The yen is still on bullish territory against the pound
  • Short-term SMAs suggest retracement or reversal opportunities against the dollar
JPY Forex Pairs Short-Term from MarketMilk
JPY Forex Pairs Short-Term from MarketMilk
  • The yen has seen the most volatility against the pound and the comdolls in the last seven days
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read JPY’s price recap for May 18 – 22!