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USD/JPY Weekly Forecast: Can inflation rescue the dollar?


5/7/2021 5:03:20 PM GMT
Dollar loses ground after dismal US payroll data.
USD/JPY directionless until Friday’s NFP disappointment.
US equity and credit markets recover after initial shock.
Labor shortage may fuel wage inflation, Treasury yields resilient.
FXStreet Forecast Poll is neutral on USD/JPY prospects.
The USD/JPY dozed from Monday’s open at 109.36 to Friday’s 109.17 approach to the US Nonfarm Payrolls report (NFP), then woke with a start as the US economy added just one-quarter of the expected jobs.  
American firms hired 266,000 people in April and the unemployment rate rose to 6.1%, according to the US Department of Labor. A far better report had been expected with a 978,000 consensus estimate for payrolls and a 5.8% unemployment rate.  ....

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USD/JPY set to lose the 109.00 threshold


4/8/2021 11:17:29 AM GMT
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By FXStreet Team
The USD/JPY pair is under pressure amid the dollar’s weakness and may fall below the 109.00 level, Valeria Bednarik, Chief Analyst at FXStreet, reports.
Japanese Trade Balance posted a larger-than-anticipated surplus of  ¥524.2 billion
“Japan published its February Current Account which posted a surplus of ¥2916.9 billion, largely surpassing the ¥1996 billion expected. The Trade Balance for the same month improved to ¥524.2 billion from ¥-130.1 billion in the previous month. Also, March Consumer Confidence printed at 36.1, better than the previous 33.8. The Eco Watchers Survey for the current situation came in at 49, while the Outlook resulted in 49.8.”
“The US session will bring Initial Jobless Claims for the week ended April 2, foreseen at 680K from 719K previously and a speech from US Federal Reserve chief Jerome Powell, due to participating in a panel dis ....

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GBP/JPY Forecast: Pound to Japanese Yen Exchange Rate Sheds Most March Gains after Year Best


April 8, 2021 - Written by Ben Hughes
Despite hitting its best levels in over a year this week, the British Pound to Japanese Yen (GBP/JPY) exchange rate has plummeted since then, shedding most of the gains seen over the past month in a matter of days. A combination of factors are helping the previously weak Japanese Yen to capitalise against this week’s broad Pound weakness. Unless there is a shift of market sentiment over the coming day, the Pound could remain jittery unless next week’s UK growth data impresses investors.
Due to strong currency movement and market sentiment, GBP/JPY has seen huge movements in recent weeks. Last week saw GBP/JPY surge from 151.17 to 153.08 - a massive gain of almost two Yen. ....

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USD/JPY Weekly Forecast: Following the yield curve


3/12/2021 4:14:33 PM GMT
US Treasury rates drive USD/JPY higher, stall in mid-week, then revive on Friday.
USD/JPY closes at 10-month high on Monday, repeats on Friday.
Treasury rates keyed on stronger US data and stimulus expectations.
Fed economic and rate projections could confirm US GDP potential.
FXStreet Forecast Poll sees overbought conditions in the medium term.
In real estate the mantra is location, location location. For currencies it is, or should be, rates, rates, rates. Over the pandemic year the importance of yields for currency valuation has been obscured then ignored. But like a suppressed urge, the more you deny it the stronger it gets. ....

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