Japan is printing a bunch of lower-tier data this week, but I have a feeling that safe-haven flows will dominate the yen’s price action.
What do you think?
Which of these potential catalysts can influence the yen’s intraweek trends?
Lower-tier domestic data
- Japan Snaps 19-Month Decline in Factory Activity in December – PMI
- Consumer confidence (Jan 6, 5:00 am GMT) seen rising from 33.7 to 35.0
- Average cash earnings (Jan 6, 11:30 pm GMT) to dip by another 0.6% in November?
- Annual household spending (Jan 7, 11:30 pm GMT) to jump from 1.9% to 2.7%
Overall risk appetite
- Vaccine and global recovery updates will continue to weigh on safe-havens like the yen
- Any safe-haven weakness would be tempered by uncertainty over the Jan 5 Georgia Senate runoffs and Biden’s confirmation on Jan 6
- U.S. NFP and FOMC-related updates can also cause volatility for USD/JPY and other major yen crosses
- News on the Brexit transition can affect European pairs like GBP/JPY and EUR/JPY
- RSI considers the yen “oversold” against the Aussie
- JPY is about to hit “oversold” conditions against NZD
- JPY is approaching “overbought” levels against the dollar on the daily time frame
- Daily SMAs show the yen’s short and long-term bearish trends against the Aussie, Kiwi, Loonie and the pound
- JPY remains bullish against the dollar
- JPY is seeing short-term demand against CHF and EUR on the daily time frame
- The yen was most volatile against the Aussie, Kiwi, pound, and franc in the last seven days