Partner Center Find a Broker

Not a lot going on in Japan’s data calendar this week, which means that the yen will likely take its cues from countercurrency news and broader market themes.

Think the yen will see volatility this week?

Here are points that might move the safe-haven in the next few days:

Countercurrency catalysts

  • PMI reports from the major economies like China, Eurozone, Japan, and the U.S. can paint a picture of the global economic recovery and influence risk-taking
  • Policy decisions of the Bank of England (BOE) and Bank of Australia (RBA) are expected to yield optimistic growth forecasts
  • NFP-related reports from the U.S. can point to the urgency of fiscal and monetary stimulus needed and influence USD/JPY’s intraweek trends

Market risk sentiment

  • As a low-yielding currency, traders turn to the yen when they don’t feel like taking risky bets
  • If last week’s prices are any indication, though, traders prefer to use the dollar as a safe-haven bet over the yen these days
  • USD/JPY’s trends can still affect the rest of the yen crosses
  • Vaccine-related updates will continue to influence overall risk-taking

Technical snapshot

  • Keltner Channels show the yen leaning towards oversold levels across the board
  • JPY is oversold against GBP on the daily time frame
JPY Forex Pairs Keltner Channel from MarketMilk
JPY Forex Pairs Keltner Channel from MarketMilk
  • SMAs reflect the yen’s short and long-term bearish trends against the Kiwi, Loonie, pound, euro, and the franc
  • We could soon see retracement opportunities on AUD/JPY
JPY Forex Pairs SMAs from MarketMilk
JPY Forex Pairs SMAs from MarketMilk
  • The yen was most volatile against the comdolls and the pound in the last seven days
JPY Forex Pairs Volatility from MarketMilk
JPY Forex Pairs Volatility from MarketMilk