Yen Consolidates And Awaits Catalyst For Next Move
Aayush Jindal
Key Highlights
Japanese yen mostly consolidated in a range against the US dollar, but managed to gain a few bids against other major currencies such as the Euro and the British pound.
Japanese Securities investment, released by Ministry of Finance registered a reading of ¥675.2B, compared to the last revised reading of ¥44.2B.
Most important releases lined up for today include BOE interest rate decision and US initial jobless claims.
Japanese Securities InvestmentEarlier during the Asian session, the Japanese Securities investment report was released by Ministry of Finance. The outcome was on the positive side, as the Japanese Foreign bond investment rose to ¥675.2B in January 30, 2015. This was a lot higher than the last revised reading of ¥44.2B. Moreover, the Japanese Foreign investment in Japan stocks was also released, which was on the lower side. IT fell sharply to ¥-104.8B, down from the previous revised reading of ¥464.8B. There was not much reaction in the Japanese yen pairs.The USDJPY pair was mostly seen consolidating in a range with a slight bearish pressure. However, it has an important support around the 117.00 level, which is protecting the downside in USDJPY.Technical AnalysisAs mentioned, there is a critical support forming around the 117.00 area, which is acting as a barrier for the US dollar sellers. There is even a trend line on the upside, which prevented gains in USDJPY on a couple of occasions. One critical point to note here is that the pair is likely forming a double bottom pattern on the 4 hour chart. So, let us see how it trades moving ahead.BOE Interest Rate DecisionToday during the London session, the BoE Interest Rate Decision will be announced by the Bank of England. There is no change in the interest rates expected, but who knows BOE also surprises us this time just as what RBA did recently. Moreover, the bank is also forecasted to keep the asset purchases value at £375B.NY SessionThere are a couple of important releases lined up in the US today. The first one would be the Initial Jobless Claims released by the US Department of Labor. The forecast is slated for a rise in the initial jobless claims from 265K to 290K. Moreover, the US Trade Balance will also be released by the Bureau of Economic Analysis and the U.S. Census Bureau, which is expected to register a trade deficit of $-38B in December 2014. If the data fail to match expectation or registers a decline, then the US dollar might trade lower moving ahead.
BOE Interest Rate DecisionToday during the London session, the BoE Interest Rate Decision will be announced by the Bank of England. There is no change in the interest rates expected, but who knows BOE also surprises us this time just as what RBA did recently. Moreover, the bank is also forecasted to keep the asset purchases value at £375B.NY SessionThere are a couple of important releases lined up in the US today. The first one would be the Initial Jobless Claims released by the US Department of Labor. The forecast is slated for a rise in the initial jobless claims from 265K to 290K. Moreover, the US Trade Balance will also be released by the Bureau of Economic Analysis and the U.S. Census Bureau, which is expected to register a trade deficit of $-38B in December 2014. If the data fail to match expectation or registers a decline, then the US dollar might trade lower moving ahead.
BOE Interest Rate DecisionToday during the London session, the BoE Interest Rate Decision will be announced by the Bank of England. There is no change in the interest rates expected, but who knows BOE also surprises us this time just as what RBA did recently. Moreover, the bank is also forecasted to keep the asset purchases value at £375B.NY SessionThere are a couple of important releases lined up in the US today. The first one would be the Initial Jobless Claims released by the US Department of Labor. The forecast is slated for a rise in the initial jobless claims from 265K to 290K. Moreover, the US Trade Balance will also be released by the Bureau of Economic Analysis and the U.S. Census Bureau, which is expected to register a trade deficit of $-38B in December 2014. If the data fail to match expectation or registers a decline, then the US dollar might trade lower moving ahead.