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Positive risk sentiment tanked the safe-haven yen last week. Check out this week’s potential catalysts to see if the bulls can sneak in a pip or two in the next few days!

Here’s a short list for ya:

Domestic economic reports

  • Annualized bank lending (Jan 11, 11:50 pm GMT) to slow down from 6.3% to 6.1%
  • Economy Watchers sentiment (Jan 2, 5:00 am GMT) seen dipping from 45.6 to 45.0
  • Preliminary machine tool orders (Jan 13, 6:00 am GMT) to jump from 8.0% to 12.5%?
  • Core machinery orders (Jan 13, 11:50 pm GMT) could plummet from 17.1% to -7.0% in November
  • Annual producer prices (Jan 13, 11:50 pm GMT) to print at -2.1% after -2.2% reading in November

Safe-haven demand

  • The U.S. dollar may have gotten some reprieve in the past few days, but USD/JPY’s longer-term downtrend remains intact
  • Stimulus prospects in the U.S. and more vaccinations around the world can continue to boost higher-yielding bets against safe-havens like the yen
  • Political uncertainty in the U.S. and lockdown plans from the major economies can weigh on risk-taking and boost the safe-havens

Technical snapshot

Watch the major yen crosses, which look like they’re hitting technical resistance levels

  • Stochastic is flagging the yen’s “oversold” conditions against the comdolls and the pound
  • JPY is also approaching oversold levels against EUR, USD, and CHF 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 CAD and GBP
  • JPY is seeing short-term demand against AUD, NZD, and CHF
JPY Forex Pairs EMAs from MarketMilk
JPY Forex Pairs EMAs from MarketMilk
  • The yen was most volatile against the comdolls and the dollar 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 Jan. 4 – 8!