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Intervention shenanigans ruined the yen’s mojo last week.

Can the yen bulls sustain a bullish trend this time?

Check out the market themes to watch out for if you’re trading the yen this week!

Lower-tier economic data

  • Preliminary GDP reading maintains a 0.6% dip in Q1 2020
  • Tokyo’s core CPI (Aug 3, 11:30 pm GMT) to inch higher from 0.3% to 0.4%?
  • Average cash earnings (Aug 6, 11:30 pm GMT) to dip by another 1.0% after a 2.1% decrease in May
  • Household spending (Aug 6, 11:30 pm GMT) expected to jump by 6.6% (from -0.1%)

Kuroda’s speech (Aug 5, 12:00 pm GMT)

  • Bank of Japan (BOJ) Governor Kuroda will talk central banking in a webinar
  • Watch out for possible jawboning

Overall risk appetite

  • Coronavirus cases, vaccine headlines, stimulus prospects, and lockdown updates will influence the demand for safe-haven currencies like the yen
  • Manufacturing PMIs and central bank events from other major economies can also make or break the yen’s intraweek trends
  • The U.S. NFP numbers could cause sharp movements in USD/JPY and affect the rest of the yen crosses

Technical snapshot

  • Stochastic considers the yen “overbought” against the U.S. dollar
  • JPY may be “oversold” against GBP, EUR, and CHF on the daily time frame
JPY Forex Pairs Stochastic from MarketMilk
JPY Forex Pairs Stochastic from MarketMilk
  • GBP/JPY, NZD/JPY, CHF/JPY, EUR/JPY, and AUD/JPY are on bullish trends on the daily time frame
  • CAD/JPY and USD/JPY remain below the 50 and 200 SMAs
JPY Forex Pairs SMAs from MarketMilk
JPY Forex Pairs SMAs from MarketMilk
  • The yen was most volatile against the comdolls and the pound in July
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read JPY’s price recap for August 27 – 31!