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Risk appetite dragged on the yen last week. Can this week’s catalysts push safe havens higher?

I’ve got a list of market themes that you should watch over!

Lower tier domestic reports

  • Economy Watchers sentiment (June 8, 5:00 am GMT) to improve from 7.9 to 12.6?
  • Average cash earnings (June 8, 11:30 pm GMT) expected to drop by 1.0% from a year ago in April
  • Core machinery orders (June 9, 11:50 pm GMT) could drop by another 7.5% (from -0.4%)
  • Annual PPI (June 9, 11:50 pm GMT) to weaken from -2.3% to -2.4%? Monthly PPI seen at -0.3% (from -1.5%)
  • BSI manufacturing index (June 10, 11:50 pm GMT) last printed at -17.2 in Q1 2020
  • Final industrial production (June 12, 4:30 am GMT) seen unchanged at -9.1% in April

Market risk appetite

  • COVID-related updates (stimulus, reopening of economies, number of deaths and cases) will continue to affect demand for safe havens like the yen
  • The Fed’s policy statement can influence dollar demand and risk trading
  • After last week’s strong moves, watch out for retracement or reversal possibilities across major yen crosses

Technical snapshot

  • RSI considers the yen “oversold” against all of its major counterparts except for its fellow safe havens
JPY Forex Pairs RSI from MarketMilk
JPY Forex Pairs RSI from MarketMilk
  • Daily SMAs point to JPY being in short AND long-term downtrends across the board
JPY Forex Pairs SMAs from MarketMilk
JPY Forex Pairs SMAs from MarketMilk
  • If you’re looking for a currency to trade the yen against, consider AUD, NZD, and GBP, which brought the most volatility to the yen 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 June 1 – 5!