The US dollar is breaking higher against the Japanese yen currency ahead of a pivotal week for the USDJPY pair, with inflation results coming from the United States being the main market watch point this week.
Traders are also debating that the Bank of Japan is going to start to raise interest rates and inflation ramps up in the Land of The Rising Sun. This previously drove much USDJPY speculation.
A closely watched section of Japan’s yield curve steepened to the most in over six years, suggesting speculation has eased over tweaks to the Bank of Japan’s super-easy monetary policy.
The spread between five- and 10-year yields climbed to 24 basis points, the highest since the BOJ introduced its negative-rate policy in January 2016, according to Bloomberg data. The five-year yield has retreated in recent weeks, while the 10-year equivalent remains close to the 0.25% ceiling tolerated by the central bank.
The reality this week is that the Japanese GDP report is going to be worth watching. Negative GDP figures are expected, this makes it incredibly difficult for the BOJ to raise rates.
According to the ActivTrader Market Sentiment tool shows that some 71% of traders are bearish towards the USDJPY pair. This is good for the upside in the USDJPY pair and could prompt more upside.
Considering that the pair is breaking towards the 131.00 level, and the massive sentiment bias, I think we could probably see more upside ahead in the USDJPY pair towards the 132.00 area or even a new yearly high.
USDJPY Short-Term Technical Analysis
Technical analysis on the four-hour time frame shows that the USDJPY pair has started to move above its key moving averages, and the 50-day MA could soon crossover the 200-day MA.
The USDJPY pair certainly looks like it could be forming a massive reversal pattern. The price will need to get above the 131.20 level before the potential bullish pattern is activated.
See real-time quotes provided by our partner.
USDJPY Medium-Term Technical Analysis
The daily time frame is showing that the USDJPY pair has recovered above its 50-day moving average and is now creating positive momentum to the upside in this instance.
It is also noteworthy that the crossover of the 50-day moving average is significant and has been in play this year and really gave a strong signal that the USDJPY pair could be about to breakout.
See real-time quotes provided by our partner.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |