Lots of potential catalysts this week!
Who’s looking at the safe havens?
Here are the factors you need to watch if you’re planning on trading the yen.
Japan’s lower-tier releases
- Household spending (June 4, 11:30 pm GMT) could see a 12.8% drop in April
- Leading index (June 5, 5:00 am GMT) to weaken from 84.7 to 76.3 in April?
Overall risk sentiment
- Pandemic updates (stimulus, reopening of economies, vaccine hopes) will continue to influence markets’ appetite for risk
- Top-tier reports like RBA, BOC, and ECB’s statements, PMI releases, GDP and labor reports, and the U.S. NFP release can affect intraday swings of the safe-haven yen
- Geopolitical tensions (U.S. vs China, China vs. Australia, Taylor Swift vs. Trump) can affect overall risk-taking
- Worsening riots in the U.S. might eventually affect U.S. economic prospects and overall risk sentiment
Technical snapshot
- Stochastic is showing JPY’s “oversold” status against all of its counterparts except against the dollar (though it’s close)
- Daily Keltner Channels are flagging JPY’s “oversold” conditions against the euro
- Watch out for potential oversold signals against AUD and NZD
- JPY’s 50 and 200 SMAs suggest the yen is “bullish but weakening” against AUD, NZD, CAD, GBP, and USD on the daily time frame
- The yen saw the most volatility against the comdoll and the pound in the last seven days
Missed last week’s price action? Read JPY’s price recap for May 25 – 29!
