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Dukascopy Community members have regained their faith in the currency pair, as following a drop to 42% in the army of bulls, this week the number of bullish votes almost doubled. A vast majority of traders believe that the pair will end this week around 102-mark, thus practically unchanged from the price at the moment of writing. At the same time, the consensus forecast correlates with the result of our technical analysis and echoes with neutral or ‘buy' signals from aggregate technical indicators.
From the perspective of fundamental analysis the pair can be highly volatile, especially on Wednesday and Thursday. Wednesday's volatility, however, depends on Haruhiko Kuroda's words, and taking into account his confidence in the resilience of the world's third largest economy, he can burry expectations for fresh stimulus any time soon. Thursday's U.S. GDP report and inflation figures from Japan, however, will be main catalysts for the pair. It is a well-known fact that the Bank of Japan is obsessed with their 2% inflation target, while weaker-than-expected GDP report from the world's largest economy can force the Fed to revise its growth outlook and the tapering process. The outlook for the pair is bullish, however, fundamental data can push the pair in any direction, hence, traders should pay attention to the news releases.
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