USDJPY IMPLIED VOLATILITY – TALKING POINTS
USDJPY overnight implied volatility has ticked up slightly from readings printed earlier this week likely in anticipation of tomorrow’s nonfarm payrolls and unemployment data expected out of the US tomorrow. Implied volatility measures remain depressed across major forex pairs, however, as tempered markets have subdued price action resulting in muted expectations for future volatility.
FOREX MARKET IMPLIED VOLATILITIES AND TRADING RANGES
The relatively low USDJPY implied volatility possibly suggests a snooze-fest for tomorrow’s US jobs data as markets expect the economic indicators to be reported in line with consensus. Alternatively, the lack of anticipated price action could indicate calm for now with a ‘volatility storm’ lurking on the horizon.
FOREX ECONOMIC CALENDAR – USDJPY
Visit the DailyFX Economic Calendar for a comprehensive list of upcoming economic events and data releases affecting the global markets.
Tomorrow’s economic data out of Japan and the US very well might serve as potential catalysts that spark a sizeable move in USDJPY spot prices – especially if NFP data surprises materially above or below estimates. Bloomberg median consensus for March’s NFP lists 170,000 as the headline jobs figure expected which compares to February’s reading of a mere 20,000 additions. That being said, check out the latest USDJPY technical analysis here for insight on potential key levels to keep an eye out for.
USDJPY TRADER CLIENT SENTIMENT
According to client positioning data from IG, USDJPY traders have aggressively increased their bearish bias with the number of traders net-short jumped 4.9 percent higher compared to yesterday while surging 47.0 percent higher relative to last week. The data also indicates that 38.0 percent of traders are net long with the ratio of traders short to long at -1.63 to 1.
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– Written by Rich Dvorak, Junior Analyst for DailyFX
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