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Consolidation Mode But Remains Bearish


Fails To Hold Onto Thursday’s High


'Big Tech' Bill Goes To Senate


Oil Up For Fifth Week On Supply Disruption, Geopolitics

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USD/JPY ticks away from Friday's trough printed in the wake of a spectacular risk sell-off triggered by the initial reports surrounding the Omicron variant of the Covid-19 virus. Friday's slide in USD/JPY was limited by the 50-DMA and the rate has been moving away from that moving average at the start of the new week, as broader risk sentiment has stabilised.

  • The uptick in USD/JPY comes as participants reassess the Omicron situation. Notably, a couple of South African health experts have suggested that the new variant has only been causing mild symptoms so far, while Moderna said they might release an adjusted vaccine as soon as early next year.
  • Elsewhere, the Nikkei reported that the Japanese gov't will likely judge that the economic recession which began in Nov 2018 ended in May 2020.
  • USD/JPY last changes hands at Y113.79, 43 pips higher on the day, with bulls setting their sights on Nov 24 high of Y115.52. Conversely, bears would be pleased by a dip through the 50-DMA at Y113.17 towards Nov 9 low of Y112.73.
  • Monthly retail sales & a speech from BoJ Gov Kuroda headline the local economic docket today. Looking further afield, unemployment & flash industrial output will hit the wires on Tuesday, while capex & company profits/sales are due Wednesday. Separately, BoJ's Adachi and Suzuki will speak on Wednesday & Thursday respectively.