Forex

Despite the MOF's best attempts, USD/JPY is holding above 155 - a level traders are clearly watching. AUD/USD shows the potential to extend gains into 66c, but having risen for 6 days already then perhaps the upside potential it limited.

USD/JPY analysis: FX intervention causes big moves in popular trading pair. FOMC, NFP and PMI data among key macro highlights this week for US dollar. USD/JPY technical levels to watch include 155.00 support.

May has historically been the second-worst month for EUR/USD (-0.62%) and GBP/USD (-0.37%) - see what to watch for from the other major currency pairs!

It was supposed to be a quiet day with Japan on a public holiday. Yet the initial rally to 160 may have irked central authorities enough to ditch their supposed day off, intervene and send USD/JPY 400-pips lower.

There seems to be no fear in shorting then yen, given large speculators pushed net-short exposure to the second highest level on record last week. EUR/USD and GBP/USD also flipped to net-short exposure.

Momentum turned higher for the US dollar on Friday and the US 2-year is reconsidering a break above 2%, which could see them close the gap with the CRM commodities index - which have led both markets higher this year.

EUR/USD may have seen its bounce off 1.0600 support stall at 1.0740 – see the levels to watch moving forward!

Welcome to another edition of Forex Friday, a weekly report in which we highlight selected currency themes. In this week’s report, we will discuss the Japanese yen, US dollar and look ahead to the next week.

US GDP, Core PCE and BoJ policy are among the risk events this week for the USD/JPY currency pair, as the focus turns to sticky inflation and elevated interest rates narrative from Middle East concerns for now. USD/JPY technical analysis point to a potential rally above 155.00.

EUR/USD futures traders are on the cusp of flipping to net-short exposure, and managed funds are increasing their short exposure to gold and crude oil.

US dollar analysis: Focus turns to sticky inflation and elevated interest rates narrative as markets regain their poise – for now – as Iran downplays the impact of Israel's strikes. The EUR/USD and USD/JPY will be in sharp focus with global PMIs and BoJ policy among other risk events coming up next week.

155 has become the latest 'glass ceiling' for the rapid rise of USD/JPY. And with a key US inflation report, BOJ meeting and potential for risk-off sentiment next week, this key level could be tested and prompt a response from Japan's central authorities.

For USD/JPY, the next test to watch will be at 155.00, and if the MOF/BOJ fail to act if USD/JPY breaches that level, traders may start to turn their eyes up to 160.00 next

The US dollar has dominated sentiment for markets this past week, but with signs of momentum waning there may be hope for a rebound on EUR/USD and DAX - even if only minor.

German ZEW survey improves for 9th consecutive month to provide the euro some much-needed support. But the US dollar is likely to remain supported on dips and this should prevent rates from rising significantly. EUR/USD technical analysis point to an oversold bounce, but the trend remains bearish

With the odds of a Fed cut arriving this year now in jeopardy, it is now over to the BOE, ECB or BOC to take the title as ‘first to begin easing’. And that brings Canadian CPI data into focus today for CAD traders.

USD/JPY is less than a day's trade from 155, a level an ex-FX diplomat warned could trigger an intervention if breached. WTI crude oil seems to have solid support above $84, to hint at a swing low.