Yen and Dollar to strengthen next week?

The longer term picture for Japanese Yen and US dollar are quite bullish. You hopefully noticed that the most recent strength in US dollar index was basically due to the fact that Yen was weak. You could actually see dollar weakening in most pairs and strengthening on the Yen and dollar index strengthening at the same time. This has been changing lately. You can see how dollar weakened this weak across most currency pairs, not necessarily Yen, and dollar index collapsed. Anyway, we have very rich week upcoming. Major economies will announce their interest rates decision: US, Europe and UK. I do hope to see some ‘fireworks’. 

On the one hand aud/usd and nzd/usd displaying clear technical bullish patterns. On the other US dollar index is close to its’ support. What does that mean? Being a technician I am ready to go either way. Commodity currencies look bullish against most other currency pairs too: Euro, British Pound and Swiss Franc. I am thinking about going long in aud/usd and shorting gbp/aud, gbp/nzd as well as eur/nzd and eur/aud. It looks like major time for correction in these pairs has come. And the timing for that seems to strike next week. Get ready and do your own analysis over the weekend.

Federal Market Committee outcome: dollar rises

Forex news from Federal Market Committee did have significant impact yesterday. Dollar regained almost half that it lost in a matter of a few trading sessions. FED gave a very clear signal that it will end this stimulation program quite soon. No wonder stocks fell, gold and silver collapsed and dollar rose. Technically it was all clear: Pound and Euro had already made to their resistance. 

One thing is not sure and that is what would be to the downtrend in Japanese Yen. It looks like it is not over yet. Various Yen pairs are taking out their resistance level, which means that Japanese Yen will continue falling. If the momentum does not stop here we are going to see new lows in eur/usd, gbp/usd and new highs in usd/jpy pairs. 

Tomorrow Canada CPI is released. That should set the tone for Canadian dollar pairs for the upcoming week.

Markets are preparing for FED decisions

We have a very important event today. It may change current market trends across the board. It is FED rate decision. If they are going to signal an end to the monetary easing process we are going to have turmoil in financial markets all over the world. If you can afford I would recommend watching what happens in the markets around 18.00-19.00 GMT. This is the time when the release comes out and Ben Bernanke conference in Washington takes place. 

From technical perspective Japanese Yen should rise. Dollar is neutral with small bullish bias. Pound may rise too. Commodity currencies look much stronger than a week before.

Japan meeting minutes may change Yen trend

Today we expect news from Japan. It will be meeting minutes from May. Looking at daily charts of most Yen pairs you could see similarities between current technical structure and that one of 2012. In 2012 after a long bearish trend Yen finally reversed and rose sharply. That is precisely what I expect for most Yen pairs any moment now. The data today at 23:50 GMT could be one of the best catalyst. It would show intentions of the Bank of Japan in the nearest future and this may unwind short Yen positions across the board. So, hope not to miss this trend changing event.

Market waits for Japan statement

Hi, guys. It looks we are going to have a pretty interesting week in Forex market. The key event will probably be Bank of Japan rate decision, particularly Bank of Japan governor Kuroda press conference after interest rate decision. You can see that Yen fell sharply for the last few days after rising for about a week. It shows that market is positioning for dovish stand from the Bank of Japan. Today we saw some mildly bullish news coming from the country when Japan Gross Domestic product came in better than expected. Market will concentrate on that for the time being. I will post updates on all the week tomorrow after this key event has passed. See you then.

Volatility increase in Forex before holidays

You have probably noticed how volatility has been increasing in financial markets. As I am mostly interested in Forex market I spend most of my time watching how various currency pairs behave. It is quite clear that Yen pairs are most influenced. Recent remarks by the president of BOJ (Bank of Japan) has put Japanese on strong pressure. You just can look at eur/jpy, gbp/jpy and usd/jpy or any other Yen pair to see that.

In my opinion this strong volatility in fx market will continue. It will also affect dollar pairs as I do think that dollar will go down till the end of this year. It does not mean we have to trade during holidays. However, if we do decide to trade we should check what news comes out this week and be aware of extra volatility that those might bring to the markets.

Here are the most important news this week:

Wednesday - Bank of England minutes at 9.30 GMT
                     Gross domestic product of New Zealand at 21:45 GMT

Thursday - Bank of Japan rate decision at 00:00 GMT
                 German producer prices at 7:00 GMT
                 US gross domestic product at 13:30 GMT

Friday - Gross domestic product of Great Britain at 9:30 GMT
              Consumer price index of Canada at 13:30 GMT
             

These are pieces of news of high importance. Be careful if you decide to trade around these times.
Good luck and see you soon.