Japan is printing a bunch of lower-tier reports, but investors are likely to trade the yen as a safe haven this week. Which catalysts should you watch
Japan is printing a bunch of lower-tier reports, but investors are likely to trade the yen as a safe haven this week.
Which catalysts should you watch out for?
I’ve got a short list!
Lower tier economic releases
- Reuters Tankan: Japan manufacturers’ less pessimistic in November
- Economy Watchers Survey (Nov 10, 5:00 am GMT) to see improvements in outlook and current conditions
- Preliminary machine tool orders (Nov 11, 6:00 am GMT) could worsen from -15.0% to -2.0% in October
- Core machinery orders (Nov 11, 11:50 pm GMT) seen dropping by 1.0% after 0.2% gain in August
- PPI (Nov 11, 11:50 pm GMT) to dip by 2.0% (from -0.8%) in September
Broad risk sentiment
- Coronavirus updates (rising cases, lockdown plans, stimulus and vaccine prospects, recession concerns) will continue to affect the demand for safe havens like the yen
- Clear U.S. election results will mean clarity on U.S. policies to expect, which could weigh on the low-yielding yen
- Major data releases like the U.S. and Chinese CPI, U.K. GDP, and remarks from major central bankers can cause intraday volatility for the major yen crosses
- Bollinger Bands reflect the yen’s “overbought” conditions against the dollar
- JPY may soon hit “oversold” status against the Kiwi
- JPY remains in neutral conditions against GBP, CAD, EUR, and CHF
- EMAs show the yen’s short and long-term bearish trends against the Aussie and Kiwi
- GBP/JPY and CAD/JPY may provide retracement or reversal opportunities
- The yen is enjoying short and long-term demand against the dollar on the daily time frame
- The yen was most volatile against the comdolls and the pound in the last seven days