Partner Center Find a Broker

Not a lot going on from Japan this week, which means the yen’s will likely take its cues from market sentiment.

Do you think we’ll see one-directional moves from the safe haven this week?

Here’s a list of potential catalysts that might affect the yen’s price action:

Inflation reports (Oct 22, 11:30 pm GMT)

  • Headline monthly inflation is expected to speed up from -0.1% to 0.2%, while the core figure could improve from -0.3% to -0.4%
  • Annual inflation could slow down from 0.2% to 0.1%, while the core annual rate is seen printing a flat rate for September
  • Bank of Japan (BOJ) Governor Kuroda recently shared that the central bank has no plans on changing its inflation target and forward guidance

PMI releases (Oct 23, 12:30 am GMT)

  • Japan’s domestic releases have been spotty so far, with improvements in manufacturing activity balancing out shaky consumer sentiment and activity during the pandemic
  • Jibun’s manufacturing PMI is expected to improve from 47.7 to 48.5 in October
  • Services PMI could also expand from 46.9 to 47.6 for the month

Market risk sentiment

  • Brexit, U.S. Presidential debates, Eurozone PMIs, and RBA’s meeting minutes are some of the countercurrency headlines that could send the yen crosses all over the charts this week
  • Look out for policy updates from the U.S., which could be delivered for maximum headline impact ahead of the elections
  • COVID-19 headlines (lockdown, stimulus, and vaccine progress) will continue to influence risk-taking and the demand for the low-yielding yen

Technical snapshot

  • The yen has gained the most value against the Aussie in the last 30 days
  • JPY has also strengthened against NZD and EUR this last month
  • The yen lost the most value against the Loonie, pound, and U.S. dollar during the time period

 

JPY Forex Pairs Performance from MarketMilk
JPY Forex Pairs Performance from MarketMilk
  • EMAs show the yen’s short and long-term bearish trend against the Loonie
  • JPY remains bullish against USD and GBP on the daily time frame
  • The yen is still under the 200 EMA though short-term demand could push the safe-haven into bullish trends against some of its counterparts
JPY Forex Pairs EMAs from MarketMilk
JPY Forex Pairs EMAs from MarketMilk
  • JPY was most volatile against GBP and the comdolls in the last seven days
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk