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
- Stochastic thinks the yen is “oversold” against NZD, AUD, and EUR on the daily time frame
- Long-term SMAs point to the yen’s daily time frame uptrends weakening against the comdolls
- The yen is still on bullish territory against the pound
- Short-term SMAs suggest retracement or reversal opportunities against the dollar
- The yen has seen the most volatility against the pound and the comdolls in the last seven days
Missed last week’s price action? Read JPY’s price recap for May 18 – 22!