Market news

Show news:
  • All news
  • Currency news
  • Stock news
  • Raw news



18.01.2022 16:35

USD/JPY: Bearish technical signal points to the end of the trend higher – MUFG

The yen has weakened overnight following the BoJ’s latest policy meeting resulting in the USD/JPY briefly moving back above the 115.00-level. But economists at MUFG Bank believe that the recent failure at 117.00 is a sign of the beginning of the end of the trend higher in USD/JPY.

USD/JPY overvaluation has become more stretched

“The BoJ left their monetary policy settings unchanged but now judges that risks to inflation are ‘balanced’ instead of ‘tilted to the downside’. The BoJ noted that as wage increases give households more purchasing power, a broader range of firms will raise prices. That, in turn, will push up inflation and heathen public perceptions that prices will rise further.” 

“The widening divergence between BoJ and Fed policy expectations should continue to place upward pressure on USD/JPY. However, USD/JPY’s recent clear failure to test the 117.00-level has provided a bearish technical signal for the pair in the near-term. That failure and the fact that the market was short JPY means the prospect of a quick rebound for USD/JPY is diminishing. 

“We have long argued the case for a correction and it seems that has unfolded a little sooner than expected. Assuming though that US dollar sentiment improves broadly, some USD/JPY recovery is feasible but this correction could be a sign of the beginning of the end of the trend higher in USD/JPY that began at the start of last year.”

 


Keep up with latest Forex market news updates: Currencies, central banks, economic indicators for oil and gold trading – all you need to work effectively on Forex.

Market focus

July 2022
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002
Mon
Tue
Wed
Thu
Fri
Sat
Sun
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Forex is open 24 hours a day, 5 days a week (except national holidays), and it can be broken up to the following four regional markets: Australia and Oceania, Asia, Europe, and America. A Forex trading session opens at 23:00 GMT on Sunday in Japan and closes at 22:00 GMT on Friday in the USA.

 
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenClose
Pacific Wellington 19:00 04:00 22:00 07:00 22:00 07:00
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenClose
Sydney 21:00 06:00 00:00 09:00 00:00 09:00
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenClose
Asian Tokyo 23:00 08:00 02:00 11:00 02:00 11:00
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenClose
Hong Kong, Singapore 00:00 09:00 03:00 12:00 03:00 12:00
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenClose
European Frankfurt, Zurich, Paris 06:00 15:00 09:00 18:00 9:00 18:00
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenCloseе
London 07:00 16:00 10:00 19:00 10:00 19:00
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenClose
American New York 12:00 21:00 15:00 00:00 15:00 00:00
Session Financial Centres UTC/GMT
OpenClose
EET
OpenClose
Local Time
OpenClose
Chicago 13:00 22:00 16:00 01:00 16:00 01:00