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Japan has a light economic calendar this week and you know what that means.

Time to pay attention to headlines from other major economies!

Planning on opening yen positions in the next few days? Here are some potential catalysts to consider:

Jibun PMI reports (Sept 23, 12:30 am GMT)

  • Recall that the Bank of Japan (BOJ) upgraded its growth forecasts in its latest policy event
  • The manufacturing index is expected to improve from 47.2 to 48.0
  • Services activity is seen jumping from 45.0 to 47.0 in September
  • The composite PMI could tick higher from 47.2 to 48.0

Demand for the safe-haven yen

  • The BOJ’s relatively upbeat tone would make it easier for traders to flock to JPY in times of risk aversion
  • Coronavirus-related updates (rising cases, stimulus, lockdown re-imposition, vaccine) will continue to influence JPY’s intraweek trends
  • Closely watched countercurrency issues like the U.S. elections, Brexit, and U.S.-China trade tensions can also affect the demand for JPY

Technical snapshot

  • Bollinger Bands suggest that the yen is “overbought” against its fellow safe havens
  • JPY may also hit overbought conditions against the euro and Loonie in the next few candlesticks
JPY Forex Pairs Bollinger Bands from MarketMilk
JPY Forex Pairs Bollinger Bands from MarketMilk
  • EMAs point to the yen enjoying short and long-term bullish trends against the pound, Loonie, and the dollar
  • The yen is seeing short-term bullish pressure against the Kiwi
  • JPY remains under the 200 EMA against EUR and CHF
JPY Forex Pairs EMAs from MarketMilk
JPY Forex Pairs EMAs from MarketMilk
  • The yen was most volatile against the Aussie, Kiwi, pound, and euro 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 September 14 – 18!