Not even market risk aversion pushed the yen higher last week.
Can the bulls make pips rain this week?
Here are market themes that could influence the yen’s price action:
Lower-tier releases
- Retail sales printed a 12.3% drop in May (from -13.9% in April)
- Unemployment rate (June 29, 11:30 pm GMT) seen to inch up from 2.6% to 2.9% in May
- Industrial production (June 29, 11:50 pm GMT) could improve from -9.8% to -6.0%
- Quarterly Tankan manufacturing and non-manufacturing indices (June 30, 11:50 pm GMT) will show sharp contractions in Q1 2020
- Consumer confidence (July 1, 5:00 am GMT) seen at 30.0 from 24.0 in June
Market risk appetite
- Trade relations between the U.S. and China, the world’s two largest economies, will affect appetite for safe havens like the yen
- Coronavirus cases and the possibility of locking down or slowdown of re-opening economies can influence appetite for risk
- Stimulus updates can affect the yen’s intraweek trends
- Dollar bulls and bears will trade USD/JPY at the release of U.S. NFP-related reports, so watch out for any spillover into other yen crosses
Technical snapshot
- Stochastic considers the yen “overbought” against the pound and Loonie on the daily time frame
- Watch out for JPY hitting the same conditions against NZD and EUR
- Short and long-term EMAs highlight the yen’s bearish trends against the Aussie, Kiwi, euro, and franc
- The yen is generally bullish against the pound, Loonie, and U.S. dollar
- The yen saw the most volatility against the comdolls and pound in the last month
Missed last week’s price action? Read JPY’s price recap for June 22 – 26!
