USD/JPY Analysis: Rallies still expected to stall out for deeper setbacks
USD/JPY News (US Dollar Japanese Yen)
USD/JPY: No reaction to BOJ’s decision to cut its routine buying of long-dated bonds
USD/JPY pair is currently trading at 111.93, having clocked a 112.00 earlier today. The Bank of Japan (BOJ) cut its purchases of bonds with maturities between 10 and 25 years to ¥160 billion, down ¥20 billion from the previous ¥180 billion.
1. Technical Overview
Technical Levels
Overview
Today last price 111.93
Today Daily Change -0.05
Today Daily Change % -0.04
Today daily open 111.98
Trends
Daily SMA20 111.27
Daily SMA50 111.14
Daily SMA100 110.81
Daily SMA200 111.52
Levels
Previous Daily High 112.08
Previous Daily Low 111.76
Previous Weekly High 112.1
Previous Weekly Low 110.84
Previous Monthly High 112.14
Previous Monthly Low 109.71
Daily Fibonacci 38.2% 111.89
Daily Fibonacci 61.8% 111.96
Daily Pivot Point S1 111.8
Daily Pivot Point S2 111.62
Daily Pivot Point S3 111.48
Daily Pivot Point R1 112.12
Daily Pivot Point R2 112.26
Daily Pivot Point R3 112.44
USD/JPY PRICE SENTIMENT
USD/JPY BULLISH PERCENTAGE INDEX
USD/JPY Pivot points
USD/JPY trading positions
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2. Fundamental Overview
BOJ has trimmed purchases of long-dated government bonds. The routine operation has failed to move the needle on USD/JPY. The central bank has also trimmed purchases of bonds with maturities between 25 and 40 years to ¥40 billion from ¥50 billion previous.
The central bank’s decision to trim bond purchases is a part of its routine operations to keep the benchmark yield near zero levels. The BOJ steps up purchases when there is upward pressure on yields and trims purchases when the yields are feeling the pull of gravity.
The routine move, therefore, has had a little positive impact on the anti-risk Japanese yen. The dollar too has failed to pick up a strong bid in response to strong US economic data released yesterday. The consumer spending, as represented by March retail sales, rose 1.6%, which was the strongest pace of growth since September 2017. Further, spending may remain strong in the near future as the jobless claims have hit a 50-year low.
USDJPY FUNDAMENTALS TODAY
3. Latest News & Analysis
USD/JPY News
USD/JPY Analysis
Big Picture
THEMES AFFECTING THE USD/JPY
SPECIAL YEARLY FORECAST
USD/JPY Forecast 2019: A barometer of global growth and markets
2018 saw contradicting forces eventually balancing each other and returning Dollar/Yen close to its starting line for the year. The robust US economy, Fed hawkishness, the detente around North Korea and rising bond yields supported the pair. Fears about international trade, a global downturn, Brexit, and hiccups in stock markets kept the pair depressed.
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USD/JPY Forecast 2019: A barometer of global growth and markets
AUD/USD Forecast 2019: Collateral damage from the US-China trade war
USD/CAD Forecast 2019: CAD comeback on the cards
Influential Institutions & People for the USD/JPY
The US Dollar Japanese Yen can be seriously affected by news or the decisions taken by two main central banks:
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.
BOJ Official Website and on Twitter
On the other
FED Official Website, on Twitter and Facebook
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.
Draghi on BOJ'S Profile and Wikipedia
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.
Jerome Powell Fed's Profile and Wikipedia
BOJ NEWS & ANALYSIS
FED NEWS & ANALYSIS
About USD/JPY
The USD/JPY (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 carry trades. This is the reason why is one of the most trades 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 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 reffered 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 dued 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', reffering 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 United States of America). The Cable is a widely observed and traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. After the result of the Brexit referendum, where the majority of the British voted to abandon the European Union, GBP/USD has been suffering some turbulence in the Forex market as a consequence of the associated risks of leaving the single market.
EUR/USD
The EUR/USD (or Euro Dollar) currency pair is one of the 'Majors', or most important pairs in the world. This group also includes GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The Euro Dollar 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 this 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.
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.