A light data week for Japan means extra focus on risk sentiment as the yen’s mover.
Ready to trade the yen as a safe-haven?
Here are market themes you should keep close tabs on:
Lower-tier domestic events
- Bank of Japan (BOJ) Governor Kuroda will give a speech. Watch for more reassurance that the central bank won’t ease the pedal from the metal just yet
- Leading indicators index (Nov 26, 5:00 am GMT) could jump from 88.5 to 92.9 in October
- Tokyo’s core CPI (Nov 26, 11:30 pm GMT) to dip by another 0.4% from -0.3% reading in October
Risk sentiment themes
- Thanksgiving week in the U.S. could lead to limited volatility for USD/JPY
- EUR/JPY and GBP/JPY will likely see more action from Brexit deal updates
- Coronavirus-related updates (rising cases, lockdown plans, vaccine prospects) will continue to factor in safe-haven demand
Technical snapshot
- Stochastic considers the yen “overbought” against the franc on the daily time frame
- JPY may soon be “oversold” against NZD
- The yen is close to reaching “overbought” levels against the dollar and Loonie
- Daily EMAs show JPY’s short and long-term downtrends against NZD, AUD, and GBP
- JPY remains on bullish trends against CAD and USD
- The yen may soon see longer-term bullish trends against EUR and CHF
- The yen was most volatile against the comdolls and the pound in the last seven days
Missed last week’s price action? Read JPY’s price recap for Nov. 16 – 20!
