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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
- 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
- The yen was most volatile against the comdolls and the pound in July
Missed last week’s price action? Read JPY’s price recap for August 27 – 31!