• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

USD/JPY Rally May Be Just The Beginning- Forecast April 16-20

By Kurt Osterberg · On April 15, 2018

Dollar/yen rallied and reached the highest levels since February as everything went in favor of the pair. What’s next? The airstrikes in Syria may actually have a positive effect and then things depend on the Fed speakers, US retail sales and the mood of President Trump.

USD/JPY fundamental movers

The biggest driver forward of the pair is trade wars, or perhaps trade peace. After the US and China ramped up the rhetoric, the past week has seen talk about talking and reaching deals. The exchange of pleasantries between the world’s No. 1 and No. 2 economies also helped Japan, the world’s No. 3.

Moreover, Trump is now considering rejoining the Trans-Pacific Partnership which is dear to Japan. Further trade means a lower need for the yen, the ultimate safe haven currency.

The US Dollar had its own reasons to rise: the FOMC Meeting Minutes showed growing confidence among members regarding rising inflation and the need to raise rates. They were also confident of inflation reaching its goal and indeed, core inflation finally topped 2% and hit 2.1%.

This contrasts with Japan, where Governor Kuroda reiterated the need for monetary stimulus until the target is reached, defying speculation for an early withdrawal of stimulus.

Syria was initially a driver of the yen to higher ground. After the Assad regime gassed its citizens on April 7th, tensions rose and fears of a US-Russia clash rose. However, the airstrikes by the US, the UK, and France were quite cautious and there may be no additional action. So, a relief rally has good chances.

Reaction to Syria strikes, US retail sales, and Fed speakers

Assuming no additional escalation in the Middle East, USD/JPY could gap higher and perhaps even top the 108 level. Later on, it is back to normal business. The most important economic indicator is US retail sales on Monday. An acceleration in the volume of sales is on the cards.

Afterwards, no less than 6 different FOMC members will speak during the week, some of them more than once. The most interesting speech comes from John Williams, which has been promoted from the San Francisco Fed to the New York Fed, serving as a de-facto No. 2.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.