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Not a lot of top-tier releases from Japan this week, which means that yen traders will likely take their cues from market risk sentiment.

Thinking about trading the safe-haven this week?

Check out the potential catalysts that might affect its prices!

Lower-tier economic reports

  • BOJ’s core CPI (Feb 24, 5:00 am GMT) last printed at -0.1%
  • Leading indicators index (Feb 25, 5:00 am GMT) to dip from 96.1 to 94.9 in January
  • Tokyo’s core CPI (Feb 25, 11:30 pm GMT) expected at -0.2% in February
  • Preliminary industrial production (Feb 25, 11:50 pm GMT) could improve from -1.0% to 3.0%, with the annual figure rising from -2.6% to -2.0% in February
  • Retail sales (Feb 25, 11:50 pm GMT) seen falling by 2.5% after 0.3% dip in December

Overall risk appetite

  • USD/JPY is vulnerable to U.S. Treasury yields volatility and traders’ reaction to Powell’s semi-annual testimonies and Uncle Sam’s second GDP reading
  • Unless we see market-changing themes pop up, the safe-haven yen will likely lose more pips to the vaccine, stimulus, and global growth optimism

Technical snapshot

  • Bollinger Bands suggest that JPY is “oversold” against AUD and NZD on the daily time frame
  • JPY is also nearing oversold conditions against GBP, CAD, and EUR
JPY Forex Pairs Bollinger Bands from MarketMilk
JPY Forex Pairs Bollinger Bands from MarketMilk
  • Simple moving averages show the yen’s short and long-term bearish trends against most of its counterparts
  • The yen is seeing short-term demand against its fellow safe-havens
JPY Forex Pairs SMAs from MarketMilk
JPY Forex Pairs SMAs from MarketMilk
  • The yen saw the most volatility against the comdolls and the pound 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 Feb. 15 – 19!