Dollar Surges on Rising Yield, Yen Dips after BoJ
Action Insight Daily Report 1-18-22

Dollar Surges on Rising Yield, Yen Dips after BoJ

Dollar is making a strong come back in Asian session today, as 10-year yield powers up to 1.85 level. Yen is under some selling pressure after BoJ stood pat as expected, and delivered little surprise other than upgrades in inflation forecasts. But Aussie and Kiwi are currently the weakest one. Canadian Dollar, on the other hand, in the second strongest, with WTI crude oil extending recent rise to 85 handle. European majors are mixed with Sterling having a slight upper hand.

Technically, Yen crosses are displaying a mixed picture. AUD/JPY and NZD/JPY look rather weak after initial post-BoJ spike. EUR/JPY and GBP/JPY also lack momentum to get through 131.39 and 157.74 resistance levels respectively. While USD/JPY's rebound from 113.47 accelerated, we're not expecting a break of 116.34 high soon. So, it looks like Yen crosses are to be avoided for now.

In Asia, at the time of writing, Nikkei is up 0.45%. Hong Kong HSI is down -0.14%. China Shanghai SSE is up 0.94%. Singapore Strait Times is up 0.22%. Japan 10-year JGB yield is up 0.0051 at 0.151. US 10-year yield is up 0.051 at 1.843.

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Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/JPY Daily Outlook

Daily Pivots: (S1) 114.29; (P) 114.47; (R1) 114.79; More...

USD/JPY's rebound from 113.47 accelerated higher today. While further rise cannot be ruled out, we're not expecting a break of 116.34 for now. Instead, the corrective pattern from there should extend with another falling leg. On the downside, break of 114.30 minor support will turn bias to the downside for 113.47. Break there will target 112.52 structural support.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:00 NZD NZIER Business Confidence Q4 -28 -11
03:00 JPY BoJ Rate Decision -0.10% -0.10% -0.10%
04:30 JPY Industrial Production M/M Nov F 7.00% 7.20% 7.20%
07:00 GBP ILO Unemployment Rate (3M) Nov 4.20% 4.20%
07:00 GBP Average Earnings Including Bonus 3M/Y Nov 4.20% 4.90%
07:00 GBP Average Earnings Excluding Bonus 3M/Y Nov 3.80% 4.30%
07:00 GBP Claimant Count Change Dec -38.6K -49.8K
07:30 CHF Producer and Import Prices M/M Dec 0.40% 0.50%
07:30 CHF Producer and Import Prices Y/Y Dec 5.80%
09:00 EUR Italy Trade Balance (EUR) Nov 4.23B 3.89B
10:00 EUR Germany ZEW Economic Sentiment Jan 32.7 29.9
10:00 EUR Germany ZEW Current Situation Jan -7.5 -7.4
10:00 EUR Eurozone ZEW Economic Sentiment Jan 29.2 26.8
13:15 CAD Housing Starts Dec 234K 301K
13:30 USD Empire State Manufacturing Index Jan 28 31.9
15:00 USD NAHB Housing Market Index Jan 84 84