USDJPY Forecast and News


USD/JPY struggles for a firm direction, stuck in a range around mid-144.00s

USD/JPY continues with its struggle to gain any meaningful traction on the last day of the week. Retreating US bond yields drags the USD to the weekly low and acts as a headwind for the pair. The Fed-BoJ policy divergence continues to lend support to the major and favours bullish traders.

Latest JPY News


Technical Overview.

The USD/JPY pair prolongs its consolidative price move on Friday and remains confined in a four-day-old trading range through the early European session. The pair is currently placed just below mid-144.00s, down less than 0.10% for the day, and is influenced by a combination of diverging forces.


Fundamental Overview

The US dollar surrenders its modest intraday gains and languishes near the weekly low amid a further pullback in the US Treasury bond yields, which, in turn, acts as a headwind for the USD/JPY pair. The UK debt market seems to have stabilized following the Bank of England's intervention for the second day on Thursday. The spillover effect drags the benchmark 10-year US Treasury note away from a 12-year high set earlier this week and weighs on the greenback.

The Japanese yen, on the other hand, draws support from mostly upbeat macro releases. In fact, official data showed that Industrial Production rose 2.7% in August from the prior month, surpassing estimates. A separate reading revealed that Japanese retail sales grew more than anticipated during the reported month. Furthermore, the unemployment in Japan edged down to 2.5% from the 2.6% previous, matching expectations and underpinning the domestic currency.

That said, a modest recovery in the risk sentiment - as depicted by a turnaround in the US equity futures - acts as a headwind for the safe-haven JPY. This, along with a big divergence in the monetary policy stance adopted by the Bank of Japan (dovish) and other major central banks, including the Federal Reserve, supports prospects for the emergence of fresh buying around the USD/JPY pair. Hence, any downtick could still be seen as a buying opportunity.

Market participants now look forward to the release of the Fed's preferred inflation gauge - the US Personal Consumption Expenditures (PCE). Friday's US economic docket also features the Chicago PMI and revised Michigan Consumer Sentiment Index. This, along with the US bond yields, will influence the USD price dynamics and provide a fresh impetus to the USD/JPY pair.



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Editors' picks

EUR/USD oscillates around 0.9800 as investors prepare for US employment data

EUR/USD oscillates around 0.9800 as investors prepare for US employment data

The EUR/USD pair is displaying back-and-forth moves around 0.9800 in the early Tokyo session. The asset has turned sideways in a 0.9780-0.9815 range as the currency domain is developing itself ahead of the US employment data.

EUR/USD News

GBP/USD aims to recapture 1.1200 ahead of US ISM Manufacturing PMI data

GBP/USD aims to recapture 1.1200 ahead of US ISM Manufacturing PMI data

The GBP/USD pair is struggling to smash the immediate hurdle of 1.1200 in the early Tokyo session. The cable has displayed a modest upside move after the termination of the corrective move to near 1.1022. The major is expected to continue its lackluster performance in the 1.1100-1.1170 range and will later display a bullish imbalanced move.

GBP/USD News

USD/JPY struggles for a firm direction, stuck in a range around mid-144.00s

USD/JPY struggles for a firm direction, stuck in a range around mid-144.00s

USD/JPY continues with its struggle to gain any meaningful traction on the last day of the week. Retreating US bond yields drags the USD to the weekly low and acts as a headwind for the pair. The Fed-BoJ policy divergence continues to lend support to the major and favours bullish traders.

USD/JPY News

Gold marches towards $1,680 amid lower consensus for US ISM data

Gold marches towards $1,680 amid lower consensus for US ISM data

Gold price has given an upside break of the minor consolidation, in early Asia, formed in a $1,660.20-1,663.32. The precious metal is marching towards the critical hurdle of $1,680.00 as the market participants are expecting a decline in the US ISM Manufacturing PMI data.

Gold News

WTI retreats towards $81.00 as hawkish central banks, recession woes battle OPEC+ chatters

WTI retreats towards $81.00 as hawkish central banks, recession woes battle OPEC+ chatters

WTI crude oil prices remain pressured towards $81.00 after retreating from the weekly top surrounding $82.50 the previous day. In doing so, the black gold portrays the oil market’s indecision amid mixed clues while bracing for the first positive week in five.

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USDJPY YEARLY FORECAST

How could USDJPY move this year? Our experts make a USDJPY update forecasting the possible moves of the yen-dollar pair during the whole year. Don't miss our 2022 USDJPY forecast!

USDJPY FORECAST 2022

In the USDJPY Price Forecast 2022, our dedicated contributors seeing a sideways tendency. By the end of the year 2021, the average forecast for the pair is 103.2100. Read more details about the forecast.

From January 2021 to December 2021, the maximum level for the USDJPY was 115.42¥/USD (on November 24th 2021), and the minimum, 103.49¥/USD (on January 21st 2021).

MOST INFLUENTIAL POLITICAL EVENTS IN 2022 FOR USDJPY

Political measures to counter coronavirus will be in the focus of the market this 2022. The prolonged impact of the pandemic resulted in major central banks launching asset-buying and lending programs while keeping policy rates near record lows.

Following decades of substantial growth, Japan has been suffering from stagnation since the 1990's stock buble crisis, marked by low inflation, low interest rates and sluggish growth. 2022 might be a a good time to think about the role of current monetary policies and their real impact on economic developments.


Influential Institutions & People for the USDJPY

The US Dollar Japanese Yen can be seriously affected by news or the decisions taken by two main central banks:

The Federal Reserve Bank (Fed)

On the other hand we found The Federal Reserve System (Fed) wich is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.

The Bank of Japan (BOJ)

The Bank of Japan is the central bank of Japan and it's a juridical person established based on the Bank of Japan Act, nor being a government agency either a private corporation. The most important missions of the BOJ are the following: to issue and manage banknotes, to implement monetary policy and to ensure stability of the financial system. Almost all of the decisions are taken by the Policy Board, formed by a bunch of members working to provide currency and monetary control and setting the next moves that the central bank will take.


Jerome Powell

Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.

Haruhiko Kuroda

Haruhiko Kuroda was nominated, by Prime Minister Shinzo Abe, as Governor of the Bank of Japan in March 2013. He had previously worked as President of the Asian Development Bank for 8 years. As the head of the BOJ, he has a major influence over the Japanese Yen. His words are usually followed by traders in order to find any clue of next possible trend in the currency. 

BOJ NEWS & ANALYSIS

FED NEWS & ANALYSIS


About USDJPY

The USDJPY (or US Dollar Japanese Yen) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD. Japanese Yen has a low-interest rate and is normally used in carrying trades. This is the reason why is one of the most traded currencies worldwide. In this pair, the US Dollar is the base currency and the Japanese Yen is the counter currency. The pair represents American (from the United States of America) and Japanese economies.

Trading this currency pair is also known as trading the "ninja" or the "gopher", although this last name is more frequently used when referred to the GBP/JPY currency pair. The US Dollar Japanese Yen usually has a positive correlation with the following two pairs: USD/CHF and USD/CAD. The nature of this correlation is due to the fact that both currency pairs also use the US Dollar as the base currency. The value of the pair tends to be affected when the two main central banks of each country, the Bank of Japan (BoJ) and the Federal Reserve Bank (Fed), face serious interest rate differential.

Related pairs

GBP/USD

The GBP/USD (or Pound Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs worldwide. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The pair is also called 'The Cable', referring to the first Transatlantic cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. This term was originated in the mid-19th century and it makes GBP/USD one of the oldest currency pairs in the world.

The popularity of the Pound Dollar is due to the fact that represents two strong economies: British and American (from the United States of America). The Cable is a closely watched and widely traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. For that reason, all the macroeconomic data related to the United States and the United Kingdom affects the price of this pair. One of the events which affected most the volatility of the pound vs. dollar was Brexit.

EUR/USD

The EUR/USD (or Euro Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The popularity of Euro Dollar is due to the fact that it gathers two main economies: the European and American (from United States of America) ones. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EUR/USD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.

Normally, the EUR/USD is very quiet during the Asian session because economic data that affects the fundamentals of those currencies is released in either the European or U.S. session. Once traders in Europe get to their desks a flurry of activity hits the tape as they start filling customer orders and jockey for positions. At noon activity slows down as traders step out for lunch and then picks back up again as the U.S. comes online.