I’m seeing some action on the yen pairs today!
What was the catalyst for these moves and can the momentum last?
Before moving on, ICYMI, Friday’s watchlist checked out USD/JPY’s range setup on a quiet trading day. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. house prices up 0.3% m/m in October according to FHFA vs. estimated 0.5% increase and earlier 0.7% growth
BOJ Summary of Opinions confirmed that policymakers are not inclined to lift interest rates or adjust YCC targets anytime soon
China’s industrial profits for November rebounded by 29.5% y/y vs. previous 2.7% y/y growth in October
Price Action News
Overlay of JPY vs. Major Currencies Chart by TradingView
It’s another relatively light trading day with barely any economic catalysts on deck. The BOJ Summary of Opinions for the December meeting managed to rock the yen pairs, however.
The report revealed that policymakers are still a long way off from announcing any exit to their easy policy era, which means that we’re not likely to get a BOJ interest rate hike or YCC target adjustment anytime soon.
This led to a bit of a selloff for the yen across the board, causing USD/JPY to pop back above the 142.50 mark once more.
Upcoming Potential Catalysts on the Economic Calendar:
U.S. Richmond manufacturing index at 3:00 pm GMT
Japanese preliminary industrial production at 11:50 pm GMT
Japanese retail sales at 11:50 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ️
CHF/JPY 15-min Forex Chart by TV
This yen pair has been on a tear, but it looks like price is closing in on a key resistance zone.
Earlier on, the release of the BOJ Summary of Opinions for December dashed hopes of seeing an exit from the central bank’s ultra-easy monetary policy anytime soon, triggering a selloff for the yen.
Up ahead, Switzerland has its Credit Suisse Economic Expectations index up for release, and an upbeat figure might be enough to sustain CHF/JPY rallies.
In that case, the pair could test R1 (167.15) soon and attempt to break higher. If that happens, watch out for a move to R2 (167.60) or higher.
If the ceiling keeps holding, CHF/JPY could retreat to the pivot point level (166.53) or lower to S1 (166.07) near a major psychological mark.
Do keep an eye out for Japan’s preliminary industrial production and retail sales figures coming up in the next Asian session when trading this one!