Dollar Remains Firm, But Yen Reversing

Action Insight Mid-Day Report 8-16-22

Dollar Remains Firm, But Yen Reversing

While Dollar remains generally firm, Yen is reversing much of this week's gain. The moves come as European benchmark yields are trading generally higher. Major European stock indexes are also in slight positive position. Canadian Dollar is rebounding, responding more to rising core inflation reading. European majors and other commodity currencies are mixed for now.

Technically, one focus is on whether USD/JPY would break through 135.57 minor resistance to resume the rebound from 130.38. If happens, such move could be accompanied by break of 138.38 minor resistance in EUR/JPY and 163.91 minor resistance in GBP/JPY. Such development might come in tandem with stronger rally in US stocks and benchmark yields.

In Europe, at the time of writing, FTSE is up 0.56%. DAX is up 0.15%. CAC is up 0.06%. Germany 10-year yield is up 0.060 at 0.960. Earlier in Asia, Nikkei dropped -0.01%. Hong Kong HSI dropped -1.05%. China Shanghai SSE rose 0.05%. Singapore Strait Times dropped -0.09%. Japan 10-year JGB yield dropped -0.0168 to 0.170.

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

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 132.71; (P) 133.16; (R1) 133.75; More...

Intraday bias in USD/JPY remains neutral at this point. Overall, corrective pattern from 139.37 will extend further. On the upside, above 135.57 will resume the rebound to retest 139.37 high. On the downside, below 131.72 will resume the fall from 139.37 through 130.38 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
01:30 AUD RBA Meeting Minutes
04:30 JPY Tertiary Industry Index M/M Jun -0.20% 0.50% 0.80% 1.10%
06:00 GBP Claimant Count Change Jul -10.5K -32.0K -20.0K -26.8K
06:00 GBP ILO Unemployment Rate (3M) Jun 3.80% 3.80% 3.80%
06:00 GBP Average Earnings Excluding Bonus 3M/Y Jun 4.70% 4.40% 4.30%
06:00 GBP Average Earnings Including Bonus 3M/Y Jun 5.10% 5.20% 6.20%
09:00 EUR Eurozone Trade Balance (EUR) Jun -30.8B -20.0B -26.0B -27.2B
09:00 EUR Germany ZEW Economic Sentiment Aug -55.3 -52.7 -53.8
09:00 EUR Germany ZEW Current Situation Aug -47.6 -48 -45.8
09:00 EUR Eurozone ZEW Economic Sentiment Aug -54.9 -52 -51.1
12:15 CAD Housing Starts Jul 275K 265K 274K 272K
12:30 CAD CPI M/M Jul 0.10% 0.10% 0.70%
12:30 CAD CPI Y/Y Jul 7.60% 7.60% 8.10%
12:30 CAD CPI Common Y/Y Jul 5.50% 4.70% 4.60%
12:30 CAD CPI Median Y/Y Jul 5.00% 4.90% 4.90%
12:30 CAD CPI Trimmed Y/Y Jul 5.40% 5.40% 5.50%
12:30 USD Building Permits Jul 1.67M 1.65M 1.70M
12:30 USD Housing Starts Jul 1.45M 1.35M 1.56M
13:15 USD Industrial Production M/M Jul 0.20% -0.20%
13:15 USD Capacity Utilization Jul 80.10% 80.00%