logo |

News

    Home   >     Industry    >     Main body

    US Dollar Outlook: USD/JPY on Fire as Yields Soar Post-Powell

    Abstract:US Dollar Outlook: USD/JPY on Fire as Yields Soar Post-Powell
    ttttttttttt.png
    USD/JPY PRICE OUTLOOK: US DOLLAR SNAPS HIGHER WITH TREASURY YIELDS FOLLOWING FED CHAIR POWELL SPEECH
    •   USD/JPY price action trading at its strongest level in nine months at the 108.00-handle

    •   US Dollar bulls propelled the DXY Index sharply higher as the bond selloff accelerated

    •   Fed Chair Powell downplays the impact of surging yields on broader financial conditions

      The US Dollar is flying high today with signs of strength across the board of FX peers. US Dollar gains were most notable against the Euro and Yen. USD/JPY soared over 90-pips on the session while EUR/USD plunged as Fed Chair Jerome Powell unleashed a surge in Treasury yields. The latest extension of the bond selloff sent the 10-year Treasury yield exploding past the 1.55% level, which further improved US interest rate differentials and energized US Dollar bulls.

    DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (05 OCT 2020 TO 04 MAR 2021)
    US

      Chart by @RichDvorakFX created using TradingView

      On balance, the broader DXY Index spiked 0.75% to eclipse its 100-day simple moving average and upper Bollinger Band. Unsurprisingly, the recent acceleration in US Dollar buying pressure has corresponded with an upswing in both the MACD indicator and relative strength index. Nearside technical resistance for the DXY Index stands out around its 04 February swing high. Surmounting this obstacle could bring the 61.8% and 78.6% Fibonacci retracement levels of the November 2020 to January 2021 bearish leg into focus. Rejecting its year-to-date high might motivate US Dollar bears to set their sights on the 20-day simple moving average.

    USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
    USD

      FX volatility has been heating up on the heels of recent bond market volatility. Interestingly, even despite today‘s move, USD/JPY overnight implied volatility of 5.4% is below its 20-day average reading of 5.7%. This suggests an implied range of a mere 62-pips. AUD/USD and NZD/USD are expected to be among the most active major currency pairs during Friday’s trading session judging by their respective overnight implied volatility readings of 10.3% and 14.6%. The upcoming release of monthly nonfarm payrolls data, due 05 March at 13:30 GMT, stands out as high-impact event risk facing the US Dollar. Learn more about how to trade the NFP report here.

      -----------------

      WikiFX, the world's No.1 broker inquiry platform!

      Use WikiFX to get free trading strategies, scam alerts, and experts experience! https://bit.ly/2XhbYt5

    7785.PNG

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.