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The Greenback ended the week lower against the Japanese Yen on Friday as signs that U.S. rates will stay unchanged for longer and renewed concerns over the European banking sector spurred demand for the safe haven Japanese currency. The pair closed week at 101.36, losing 0.75% for the five-trading days. The U.S. Dollar fell to lowest level in two months on July 10, as concerns over the fiscal stability of Banco Espirito Santo caused a sharp sell-off in markets. On July 15, the BoJ stayed pat on its stimulus, which triggered an 18% slide in the Yen last year. The economic outlook was revised slightly to the downside, while achieving the 2% inflation goal is still seen possible. The news appeared to have a slight impact on the Yen.
According to the Community members, who took part in the survey, the Japanese Yen is seen weakening versus the U.S. Dollar. The USD/JPY pair is expected to end this week at 101.46, with a majority of respondents (67%) sharing bullish sentiment for the currency pair. "Trading very close to the yearly lows, we may see buyers stepping in this week to push the price higher in this pair. However, June lows have been broken and momentum indicates bearishness. The pull back this week can offer an attractive short opportunity," says Jignesh. Meanwhile, Likerty argues that " the Yen just confirms what is starting to get obvious across the board - the U.S. Dollar is a one way trip for weakness. Next hesitation/bounce area sits just bellow the range at 100.40's thus, bearish breakout movement can be short lived. To the upside - not much of the room left and 100.60's could be ideal point for bearish continuation." As there are few economic events in Japan this week, all eyes will be on U.S. data.
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