USDJPY Forecast and News
USD/JPY breaks above 109.50 as US yields keep rising
Yen tumbles amid higher US yields. US Dollar gains momentum during the American session. The USD/JPY rose further and climbed to 109.56, reaching the highest level since May 3. The US dollar is having the best day in more than a month versus the yen and it heads toward the higher daily close in a month.
Latest JPY News
Technical Overview.
The USD/JPY pair tested 109.00 on Tuesday but ended up closing the day in the red at 108.60. On Wednesday, the pair continues to move in a tight range despite the modest USD strength and was last seen gaining 0.1% on the day at 108.70.
Support levels: 108.30 107.90 107.50
Resistance levels: 108.85 109.25 109.70
Fundamental Overview
The risk-averse market environment, as reflected by the sharp declines seen in global major equity indexes, provided a boost to the safe-haven JPY on Tuesday. At the moment, European stocks trade in the positive territory and limit's the JPY's potential gains for the time being. However, the S&P 500 Futures are down 0.4%, suggesting that the market mood is likely to turn dismal in the second half of the day.
Meanwhile, the US Dollar Index (DXY) is up 0.17% on the day at 90.31, helping USD/JPY stay afloat in the positive territory.
Later in the session, the US Bureau of Labor Statistics will release the April Consumer Price Index (CPI) data. Investors expect the Core CPI, which strips volatile food and energy prices, to rise to 2.3% on a yearly basis from 1.6% in March.
A reading of 2.5% or above could help the greenback gather strength against its rivals. However, the impact of inflation data on the USD could remain short-lived following last Friday's disappointing Nonfarm Payrolls report.
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: Can inflation rescue the dollar?
The USD/JPY dozed from Monday’s open at 109.36 to Friday’s 109.17 approach to the US Nonfarm Payrolls report (NFP), then woke with a start as the US economy added just one-quarter of the expected jobs. American firms hired 266,000 people in April and the unemployment rate rose to 6.1%, according to the US Department of Labor.
Big Picture
USDJPY Bullish Themes
USDJPY Bearish Themes
Latest JPY Analysis
Editors' picks
EUR/USD depressed near a fresh weekly low at 1.2065
EUR/USD lost the 1.2100 mark with US inflation data, holding near its daily lows as demand for high-yielding assets receded. The greenback has room to continue rallying.
GBP/USD extends slump sub-1.4100 as dollar rallies
GBP/USD has extended its decline after US CPI beat estimates with 4.2% while Core CPI came out at 3%. Earlier, UK GDP beat expectations with -1.5%. Volatility is rising.
USD/JPY breaks above 109.50 as US yields keep rising
Yen tumbles amid higher US yields. US Dollar gains momentum during the American session. The USD/JPY rose further and climbed to 109.56, reaching the highest level since May 3. The US dollar is having the best day in more than a month versus the yen and it heads toward the higher daily close in a month.
XAU/USD tests $1,820 as USD capitalizes on US CPI data
The XAU/USD pair fluctuated wildly in the early American session as investors assessed the latest inflation report from the US. After spiking to a daily high of $1,843, the pair reversed its direction and dropped to $1,820 area.
WTI tests $66 after IEA says oil demand recovery will outpace growth in supply
Oil demand recovery will outpace growth in supply,” the International Energy Agency (IEA) said in its latest monthly oil market report published on Wednesday, adding that the demand recovery forecast assumes the COVID-19 situation in India improves.
Majors
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 2021 USDJPY forecast!
USDJPY FORECAST 2021
In the USDJPY Price Forecast 2021, our dedicated contributors seeing a sideways tendency. By the end of the year 2020, the average forecast for the pair is 103.2100. Read more details about the forecast.
From January 2020 to December 2020, the maximum level for the USDJPY was 112.28¥/USD (on February 19th 2020), and the minimum, 102.94¥/USD (on March 09th 2020).
MOST INFLUENTIAL POLITICAL EVENTS IN 2021 FOR USDJPY
Political measures to counter coronavirus will be the market focus this 2021. The prolonged impact of the COVID-19 pandemic resulted in worldwide central banks launching asset-buying and lending programs while keeping the main rates on hold at record lows.
The BoJ announced it “will conduct an assessment on further effective and sustainable monetary easing,” and pledged to maintain the current monetary easing until inflation reaches the 2% goal.
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
FED Official Website, on Twitter and Facebook
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.
BOJ Official Website and on Twitter
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
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
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.