U.S. stimulus talks and overall risk sentiment sent the yen all over the place last week.
Can the safe haven find a clearer direction this week?
Japan isn’t printing a lot of top-tier reports but here are points you need to know about events that could affect the yen:
- Japan’s machinery orders rise for a second straight month in August
- Japan producer prices slip 0.2% in September
- Preliminary machine tool orders (Oct 12, 11:50 pm GMT) to improve from -23.3% to -15.0% in September
- Monthly industrial production (Oct 14, 4:30 am GMT) to be revised lower from 8.7% to 1.7%?
Market risk appetite
- As seen in last week’s price action, yen traders are very much interested in the developments of another stimulus deal in the U.S.
- Interest rate cut speculations from other major central banks could affect the demand for the safe-haven yen
- Top-tier releases like China’s trade balance, Australia’s jobs data, and the U.S. retail sales numbers can also influence JPY’s intraweek trends
- Stochastic is reflecting JPY’s oversold conditions against most of its major counterparts on the daily time frame
- Daily EMAs show the yen’s short and long-term bullish trend against the dollar
- JPY is on short AND long-term bearish trends against the rest of its major counterparts
- A quick peek at the SMAs suggest that the yen may be seeing green shoots in the 50 SMAs
- The yen was most volatile against the comdolls and the pound in the last seven days