USD/JPY declines on soft US jobs data, eyes on Trump

Source Fxstreet
  • USD/JPY retreats from six-day high as U.S. Initial Jobless Claims suggest labor market cooling.
  • Bank of Japan meeting likely to see 25 basis point rate hike, contrasting with Fed's steady stance.
  • Global markets await Trump's Davos comments, with trade policy rhetoric set to influence currencies.

The USD/JPY slides during the North American session after hitting a six-day high of 156.75, as labor market data revealed in the United States (US) came worse than expected. At the time of writing, the pair trades at 156.28, down 0.19%.

Japanese Yen appreciates ahead BoJ’s policy decision

The US Department of Labor revealed that Initial Jobless Claims for the week ended January 18 increased, to 223K, exceeding forecasts of 220K. Labor market strength and rising inflation figures had prompted the Federal Reserve from continuing to easing policy, alongside uncertainty regarding the new fiscal policy applied by the Trump administration.

Even though the Fed is expected to keep rates unchanged at the next week’s meeting, the Bank of Japan (BoJ) most likely raise rates by 25 basis points (bps), which would be the highest since 2007 at the January 23-24 meeting.  Several senior BoJ officials expressed confidence on wage growth momentum.

In the meantime, the lack of economic data in the US and Japan would keep traders eyeing the US President Donald Trump appearance at the Davos World Economic Form (WEF). His trade policy rhetoric has sent waves across global financial makers,

USD/JPY Price Forecast: Technical outlook

The USD/JPY has found stir resistance at the 157.00 figure with bulls unable to crack it since sliding below the latter on January 15. Momentum seems to favor sellers, as spot prices lie beneath the confluence of the Tenkan and Kijun-sen at the 156.64-156.48 range, which if broken, could pave the way for further downside. The next key support will be the January 22 low of 155.33, followed by January 21 swing low of 154.75.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.17% -0.00% -0.09% -0.04% 0.05% 0.08% 0.27%
EUR -0.17%   -0.18% -0.28% -0.21% -0.12% -0.09% 0.10%
GBP 0.00% 0.18%   -0.10% -0.03% 0.06% 0.09% 0.28%
JPY 0.09% 0.28% 0.10%   0.06% 0.16% 0.15% 0.37%
CAD 0.04% 0.21% 0.03% -0.06%   0.10% 0.12% 0.31%
AUD -0.05% 0.12% -0.06% -0.16% -0.10%   0.03% 0.21%
NZD -0.08% 0.09% -0.09% -0.15% -0.12% -0.03%   0.19%
CHF -0.27% -0.10% -0.28% -0.37% -0.31% -0.21% -0.19%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Author  FXStreet
Yesterday 01: 14
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
placeholder
Japanese Yen drifts lower as sustained USD buying offsets intervention fearsThe USD/JPY pair attracts some buyers following the previous day's two-day price moves, trading above the 158.00 mark during the early part of the European session on Tuesday.
Author  FXStreet
Yesterday 07: 53
The USD/JPY pair attracts some buyers following the previous day's two-day price moves, trading above the 158.00 mark during the early part of the European session on Tuesday.
placeholder
AUD/USD Price Forecast: Struggles to return to 0.7000 amid firm US DollarThe Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
Author  FXStreet
Yesterday 08: 58
The Australian Dollar (AUD) gives back its early gains after rising to near 0.6975 and turns marginally lower at around 0.6964 against the US Dollar (USD) during the European trading session on Tuesday.
placeholder
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Author  FXStreet
9 hours ago
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Related Instrument
goTop
quote