USDJPY Forecast and News


USD/JPY slides to fresh session lows, around 104.25-20 region

USD/JPY witnessed some selling on Thursday amid persistent selling surrounding the greenback. COVID-19 vaccine optimism might cap gains for the safe-haven JPY and help limit the downside. Holiday-thinned liquidity conditions could further hold investors from placing fresh bearish bets.

Latest JPY News


Technical Overview.

The USD/JPY pair is neutral-to-bearish in the near-term, as the 4-hour chart shows that it is unable to surpass a mildly bearish 20 SMA. The longer moving averages gain bearish strength above the shorter one, skewing the risk to the downside. The Momentum indicator remains directionless around its midline, while the RSI indicator turned south, currently at 45, further supporting another leg lower.

Support levels: 103.95 103.50 103.15

Resistance levels: 104.65 105.00 105.40  


Fundamental Overview

The American dollar is still the weakest currency across the FX board, with the JPY appreciating despite a sour market’s mood. Thinned trading amid a US holiday sees major pairs holding within familiar levels. The USD/JPY pair is trading lower in range in the 104.20 price zone.

Japan published the final reading of the September Leading Economic Index, which resulted at 92.5, below the 92.9 expected. The Coincident Index for the same period improved to 81.1. The US won’t release macroeconomic data for the rest of the week.



SPECIAL WEEKLY FORECAST

Interested in weekly USDJPY forecasts? Our experts make weekly updates forecasting the next possible moves of the yen-dollar pair. Here you can find the most recent forecast by our market experts:

USD/JPY Weekly Forecast: Hostage to the pandemic

If the USD/JPY saw it largest one day rally since the March panic with the Pfizer vaccine announcement on November 9th, the dollar's steady fall over the subsequent nine sessions is proof, if any were needed, that the grinding reality of the pandemic is still the overriding factor in the markets.

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Big Picture

USDJPY Bullish Themes

USDJPY Bearish Themes

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FXS Signals

Latest JPY Analysis


Latest JPY Analysis

Editors' picks

EUR/USD battles 1.19 after cautious ECB minutes

EUR/USD has stabilized around 1.19 after the ECB meeting minutes pointed to some caution about expanding the bond-buying scheme. Earlier, the dollar weakened after the Fed signaled openness to more QE. The US holiday implies thin volume.

EUR/USD News

GBP/USD falls below 1.3350 amid Brexit concerns

GBP/USD retreats from near 1.3400, undermined by Brexit woes and renewed dollar demand. Doubts arise about Chief EU Negotiator Barnier traveling to London.

GBP/USD News

USD/JPY slides to fresh session lows, around 104.25-20 region

USD/JPY witnessed some selling on Thursday amid persistent selling surrounding the greenback. COVID-19 vaccine optimism might cap gains for the safe-haven JPY and help limit the downside. Holiday-thinned liquidity conditions could further hold investors from placing fresh bearish bets.

USD/JPY News

XAU/USD remains supported above $1800 level amid quiet holiday trade

Spot gold (XAU/USD) continues its gradual grind higher for a second day, the precious metal having bounced at support at the psychological $1800 mark on Tuesday, following a hefty sell-off at the start of the week that saw spot prices drop from the high $1800s. 

Gold news

WTI retreats from tops beyond $46.00 per barrel

Prices of the WTI met sellers above the $46.00 mark. Demand concerns re-emerge and weigh on sentiment. The EIA reported US crude supplies dropped by 0.754M last week.

Oil News

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Cryptocurrencies

Signatures


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 2020 USDJPY forecast!

USDJPY FORECAST 2020

In our USDJPY Price Forecast 2020, our dedicated contributors seeing an overall bullish picture. By the end of the year 2019, the average forecast for the pair was 108,6800. Read more details about the forecast.

From July 2019 to January 2020, the maximum level for the USDJPY was 119.58¥/USD (on December 16th 2019), and the minimum, 104.72¥/USD (on August 25 2019).

MOST INFLUENTIAL POLITICAL EVENTS IN 2020 FOR USDJPY

Sino-American relations will likely continue moving markets early in the year. Financial markets will likely seek assurances that the world’s largest economies are not on course to any deterioration.

The Bank of Japan is unlikely to move, but would probably like to keep on waving its stick and threaten more action.


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 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 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.