Japan is printing a bunch of lower-tier data this week, but I have a feeling that safe-haven flows will dominate the yen’s price action.
What do you think?
Which of these potential catalysts can influence the yen’s intraweek trends?
Lower-tier domestic data
Overall risk appetite
- Vaccine and global recovery updates will continue to weigh on safe-havens like the yen
- Any safe-haven weakness would be tempered by uncertainty over the Jan 5 Georgia Senate runoffs and Biden’s confirmation on Jan 6
- U.S. NFP and FOMC-related updates can also cause volatility for USD/JPY and other major yen crosses
- News on the Brexit transition can affect European pairs like GBP/JPY and EUR/JPY
Technical snapshot
- RSI considers the yen “oversold” against the Aussie
- JPY is about to hit “oversold” conditions against NZD
- JPY is approaching “overbought” levels against the dollar on the daily time frame
- Daily SMAs show the yen’s short and long-term bearish trends against the Aussie, Kiwi, Loonie and the pound
- JPY remains bullish against the dollar
- JPY is seeing short-term demand against CHF and EUR on the daily time frame
- The yen was most volatile against the Aussie, Kiwi, pound, and franc in the last seven days
This post first appeared on babypips.com
