DailyFX.com -

- Japanese Yen consolidating near make-or-break levels versus US Dollar

- Strong link to yields suggests recent moves in bonds favor the downside

- Watch for any sudden breakdowns on acceleration below ¥101.50

The US Dollar trades at potentially critical levels versus the Japanese Yen. Why might the USDJPY tumble to fresh lows, and how might we trade it?

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

Dollar Trading at Potentially Critical Levels versus the Japanese Yen

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.

Correlation to US Treasury Yields Underlines Key Risk to USDJPY

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Data source: Bloomberg, Prepared by David Rodriguez

US 10-Year Treasury Yield Testing Significant Support as Moving Averages Show Bearish Shift

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: TradingView.com, Prepared by David Rodriguez

Large Speculative Traders Remained heavily Long USDJPY, Warning of Sentiment Extreme

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: CFTC Commitment of Traders data, Prepared by David Rodriguez.

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

Forex Correlations Summary

View forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART

Related Articles
  1. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  2. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  3. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  4. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  5. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  6. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  7. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  8. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  9. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  10. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!