x
Breaking News
0

Yen Nears 2-week Low

By Market Pulse (Kenny Fisher)ForexJun 19, 2017 11:56AM ET
www.investing.com/analysis/yen-nears-2-week-low-200196067
Yen Nears 2-week Low
By Market Pulse (Kenny Fisher)   |  Jun 19, 2017 11:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

USD/JPY has pushed higher in the Monday session, as the pair trades at 111.30 in the North American session. On the release front, Japan’s trade surplus improved to 0.13 trillion, but this was well short of the estimate of JPY 0.35 trillion. In the US, the only releases are speeches from FOMC members Dudley and Evans. On Tuesday, the BoJ will release the minutes of the April policy meeting.

The Bank of Japan sounded upbeat on the economy in its rate statement on Friday, but the positive spin didn’t seem to impress the markets, as USD/JPY lost ground. The BoJ indicated that it had no plans to reduce its ultra-accommodative monetary policy, which includes negative (short term) interest rates and an asset-purchase program of JPY 80 billion/year. The rate statement took note of the stronger Japanese economy, stating that private consumption was showing “increased resilience.” This was more hawkish than the April statement, when the bank said that private consumption was “resilient”. The economy has shown improvement in 2017, as stronger global demand has boosted the Japanese manufacturing and export sectors. At the same time, inflation remains stubbornly low, well below the bank’s target of 2.0 percent. At a press conference, BoJ Governor Haruhiko Kuroda would not say when the bank might exit its current monetary policy. There have been calls for the bank to lower its inflation goal, but Kuroda said that the ultra-loose policy would continue until the 2% target is achieved.

The US wrapped up the week on a sour note, as construction and consumer confidence reports missed expectations. Building Permits dropped to 1.17 million, its lowest level since August 2016. Housing Starts were also week, as the reading of 1.09 million marked the lowest since November 2016. There is concern that the soft construction numbers could weigh on second-quarter growth. There was more bad news from UoM Consumer Sentiment, which dipped to 94.7 in May, marking a 7-month low. This is significant, as it is the indicator’s lowest reading since President Trump took office, and points to consumer unease with how the US economy is being handled. There are troubling signs that the June UoM report could be even lower, coming after the Comey testimony, which has damaged Trump’s credibility even further.

USD/JPY Fundamentals

Sunday (June 18)

  • 19:50 Japanese Trade Balance. Estimate 0.35T. Actual 0.13T

Monday (June 19)

  • 8:00 US FOMC Member William Dudley Speaks
  • 19:00 US FOMC Member Charles Evans Speaks

Tuesday (June 20)

  • 19:50 BoJ Monetary Policy Meeting Minutes

*All release times are GMT

*Key events are in bold

USD/JPY for Monday, June 19, 2017

USD/JPY
USD/JPY

USD/JPY June 19 at 10:30 EDT

Open: 110.89 High: 111.39 Low: 110.76 Close: 111.34

USD/JPY Technicals

S3 S2 S1 R1 R2 R3
108.13 109.77 110.94 112.57 113.55 114.37

USD/JPY ticked higher in the Asian session and was flat in the European session. The pair has posted slight gains in North American trade

  • 110.94 has switched to a support role following gains by USD/JPY. It is a weak line
  • 112.57 is the next resistance line
  • Current range: 110.94 to 112.57

Further levels in both directions:

  • Below: 110.94, 109.77, 108.13 and 106.68
  • Above: 112.57, 113.55 and 114.37

OANDA’s Open Positions Ratio

In the Monday session, USD/JPY ratio is showing long positions with a majority (65%), indicative of trader bias towards USD/JPY moving to higher levels.

Original Post

Yen Nears 2-week Low
 

Related Articles

Yen Nears 2-week Low

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email