Daily Market Analysis By FXOpen

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Bank of Japan Raises Rates, Yen Strengthens

The Bank of Japan (BOJ) has raised short-term interest rates to 0.5%, the highest level in 17 years. While this move was anticipated, the currency market responded with a significant strengthening of the yen, with USD/JPY falling by approximately 0.6%.

At a press conference, BOJ Governor Ueda stated that there is no predetermined course for future rate adjustments. Meanwhile, media reports cite analysts’ opinions suggesting that the rate could be raised again before the end of 2025.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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S&P 500 Index Sets Record High

As shown by the S&P 500 chart (US SPX 500 mini on FXOpen), the stock index:
→ has increased by approximately 3.5% since the start of the year;
→ surpassed its previous all-time highs set in December.

Market participants’ optimism was driven by:
→ a strong start to earnings season and expectations of robust reports from major tech companies;
→ statements made by Donald Trump at the Davos forum, where the US president urged Saudi Arabia to lower oil prices and expressed the view that interest rates should be reduced. Overall, such measures are expected to foster economic growth.

Reuters quoted Lindsay Bell, Chief Strategist at 248 Ventures: buyers "like the idea of interest rates coming down, of oil prices coming down. All in all, the market is optimistic the more they hear about Trump policies. We're just seeing a reflection of that optimism."

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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What Are Financial Derivatives and How to Trade Them?

Financial derivatives are powerful instruments used by traders to speculate on market movements or manage risk. From futures to CFDs, derivatives offer potential opportunities across global markets. This article examines “What is a derivative in finance?”, delving into the main types of derivatives, how they function, and key considerations for traders.

What Are Derivatives?
A financial derivative is a contract with its value tied to the performance of an underlying asset. These assets can include stocks, commodities, currencies, ETFs, or market indices. Instead of buying the asset itself, traders and investors use derivatives to speculate on price movements or manage financial risk.

Fundamentally, derivatives are contracts made between two parties. They allow one side to take advantage of changes in the asset's price, whether it rises or falls. For example, a futures contract locks in a price for buying or selling an asset on a specific date, while a contract for difference (CFD) helps traders speculate on the price of an asset without owning it.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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Market Analysis: AUD/USD and NZD/USD Bounce Back: Are Further Gains Ahead?

AUD/USD started a decent increase above the 0.6200 and 0.6250 levels. NZD/USD is also rising and might aim for more gains above 0.5685.

Important Takeaways for AUD USD and NZD USD Analysis Today
· The Aussie Dollar rallied after forming a base above the 0.6165 level against the US Dollar.

· There is a key bullish trend line forming with support at 0.6290 on the hourly chart of AUD/USD at FXOpen.

· NZD/USD is consolidating gains from the 0.5650 zone.

· There is a major bullish trend line forming with support at 0.5685 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair started a fresh increase from the 0.6165 support. The Aussie Dollar was able to clear the 0.6200 resistance to move into a positive zone against the US Dollar.

There was a close above the 0.6250 resistance and the 50-hour simple moving average. Finally, the pair tested the 0.6330 zone. A high was formed near 0.6330 and the pair recently saw a minor pullback.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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XNG/USD Analysis: Bears Pressure Key Support

On 5 December, while analysing the natural gas chart, we noted that price movements:
→ were forming an ascending channel (shown in blue);
→ support from the lower boundary of the channel (reinforced by the psychological level of 3.000) was already evident in a nascent price reversal (indicated by an arrow).

As the XNG/USD chart illustrates, since that time (marked by a blue arrow), the price indeed rose, using the support from the lower boundary of the channel to reach its upper boundary on 30 December.

However, we now see supply forces displaying aggression – whenever the natural gas price climbs above 3.700, bears quickly intervene (marked by red arrows), pushing the price back down.

What could happen next?

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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Apple (AAPL) Stock Price Analysis: Worst Start to the Year Since 2008

On 27 December, while analysing Apple (AAPL) stock, we noted: "Traders should consider the possibility of a pullback below the key psychological level of $250, with the price potentially retreating to the lower purple boundary."

A month later, Bloomberg reports:

→ By the close of trading on Friday, 24 January, the company's shares had fallen 11% since the start of 2025, marking the worst performance among the "Big Seven" companies.

→ This represents the worst start for AAPL shares since 2008, when the global financial crisis was in full swing.

→ Apple has also significantly underperformed the S&P 500, which has risen approximately 3.7% this year and hit a new record high earlier this week.

Can the bulls reverse this disappointing trend?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.