US DOLLAR TO JAPANESE YEN OUTLOOK: USD/JPY PRICE ACTION RALLIES WITH TREASURY YIELDS AS RETAIL FX TRADERS
US DOLLAR TO JAPANESE YEN OUTLOOK: USD/JPY PRICE ACTION RALLIES WITH TREASURY YIELDS AS RETAIL FX TRADERS RAMP SHORT POSITIONS
- USD/JPY worth motion has spiked 145-pips over the past 5 buying and selling classes
- IG Shopper Sentiment knowledge reveals a 16% enhance in USD/JPY brief positioning
- US Greenback to Japanese Yen might proceed its climb alongside Treasury yields
USD/JPY has been on a tear increased since final Friday. Along with a stretch of broad-based JPY weak spot, the US Greenback seems to be rallying on the again of an upbeat July 2020 NFP report, in addition to surging Treasury yields. Spot USD/JPY worth motion now trades increased by about 100-pips month-to-date.
USD/JPY PRICE CHART OVERLAID WITH TEN-YEAR TREASURY TO JAPANESE GOVERNMENT BONDS YIELD SPREAD: 4-HOUR TIME FRAME (08 JULY TO 13 AUGUST 2020)
Chart created by @RichDvorakFX with TradingView
That mentioned, retail FX merchants have ramped their brief positioning on the Greenback-Yen over the past 24-hours. That is indicated by the newest IG Shopper Sentiment Report, which particulars a 16% rise in USD/JPY shorts on the day as mentioned within the webinar recording above.
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USD/JPY SHORT POSITIONING JUMPS – IG CLIENT SENTIMENT (13 AUGUST 2020)
The upcoming launch of month-to-month retail gross sales and shopper sentiment knowledge stand out as potential catalysts – notably if the stories deviate materially from market expectations. In keeping with the DailyFX Financial Calendar, retail gross sales knowledge is due Friday, August 14 at 12:30 GMT, and the consensus estimate is in search of a 1.9% rise month-on-month. Preliminary shopper sentiment knowledge is slated to cross the wires shortly after at 14:00 GMT, and the median economist forecast stands at a studying of 72.zero for the present month.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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