Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE - In Google Play

View
USD/JPY is aggressively dipping

USD/JPY is aggressively dipping

Information is not investment advice

The Japanese yen gained amid the overall risk-off sentiment on the market. Let’s discuss the details.

What happened?

The Federal Reserve held a meeting yesterday, where it left rates at low levels until 2023. Nevertheless, market participants didn’t take it as dovish. Instead of that, the US dollar strengthened and outperformed most major currencies (except the Japanese yen).

Following this, the Fed claimed that the recovery path would be quite uncertain. As a result, they streamed their capital from risker currencies and stocks into safe-haven assets such as the US dollar and the Japanese yen. Choosing between two of them, the yen seems to be more attractive amid constant US-China tensions and worse-than-expected US retail sales.

Moreover, the Bank of Japan made a monetary policy report this morning. The central bank left asset purchases and interest rates at the current levels. Later on, officials said that they would unveil more stimulus aid if needed. What’s more important, the BOJ added optimistic comments about the Japan output, exports, and consumer spending. As a result, it added some tailwinds to the Japanese yen.

Technical tips

USD/JPY has approached to the key support of 104.70 on the daily chart. The move below will drive the price even deeper to the low of July 31 at 104.30. In the opposite scenario, if it jumps above the intraday high of 105.10, it will clear the way towards the next round number at the 105.50 level.

Follow US unemployment claims at 15:30 MT time. They will add volatility to USD/JPY!

USDJPYH4.png

LOG IN

Similar

Popular

Choose your payment system

Learn more