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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

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

Technical snapshot

  • 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
JPY Forex Pairs RSI from MarketMilk
JPY Forex Pairs RSI from MarketMilk
  • 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
JPY Forex Pairs SMA from MarketMilk
JPY Forex Pairs SMA from MarketMilk
  • The yen was most volatile against the Aussie, Kiwi, pound, and franc in the last seven days
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk