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I’m not seeing top-tier reports from Japan this week, which means we need to look out for catalysts that might affect the demand for safe havens.

What catalysts do you have in mind?

Here are a few I’ve identified:

Lower-tier reports

  • Leading indicators (Oct 7, 5:00 am GMT) seen improving from 86.7 to 88.0
  • Economy Watchers sentiment (Oct 8, 5:00 am GMT) expected at 45.0 (from 43.9)
  • Average cash earnings (Oct 8, 11:30 pm GM) to dip by 0.9% after 1.3% downtick
  • Household spending (Oct 8, 11:30 pm GMT) to gain by 3.0% after a 6.5% drop in July

Appetite for safe havens

  • COVID-19 updates (stimulus, number of cases, lockdown, economic growth) will continue to influence the demand for low-yielding currencies
  • U.S. elections (Trump’s COVID-19 infection, U.S. VP debates) and Brexit headlines can also affect JPY’s intraweek trends
  • RBA’s policy announcement and speeches from Fed, ECB, BOE, and BOC heads can cause intraday volatility for the yen crosses

Technical snapshot

  • Stochastic considers the yen “oversold” against the pound
  • The yen may also reach oversold status against the dollar soon
  • JPY remains neutral against the comdolls and the European currencies on the daily time frame
JPY Forex Pairs Stochastic from MarketMilk
JPY Forex Pairs Stochastic from MarketMilk
  • EMAs show the yen’s short and long-term bearish trends against AUD and NZD
  • CAD/JPY, GBP/JPY, and USD/JPY may soon see retracements or reversals on the daily time frame
JPY Forex Pairs EMAs from MarketMilk
JPY Forex Pairs EMAs from MarketMilk
  • JPY was most volatile against AUD, GBP, NZD, and CHF 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 Sept 28 – Oct 2!