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The USD/JPY currency pair behaved in a more calm manner than its two major counterparts during the previous week. The American currency continued with the trend of the week before and gained value, by crossing the important psychological level of 107. While more than 56% of all votes were positive for the USD/JPY cross last week, the pair moved in accordance with traders' expectations. Hovering around 105.18 level in the morning of September 8, the Japanese yen began depreciating on a moderate pace and closed the trading week at 107.36, just above the daily R1 resistance. The development of the pair was not only influenced by strong statistical data from the U.S., but also by weak fundamentals from Japan. According to the final reading, gross domestic product of the country dropped 1.8% in Q2, while core machinery orders rose less than forecasted.
Meanwhile, this week Dukascopy Community members predict the U.S. Dollar advance further, as bullish side of the votes picked up to 62.5%, meaning that the appreciation of the world's most important reserve currency will continue. Similar to all USD-crosses, traders should pay attention to the FOMC meeting, which is supposed to take place on September 17. From Japanese side, the trade balance data is due to be released on Thursday. Despite all, general outlook for the USD/JPY currency pair remains positive. A move towards 110 major level is suggested by a number of Dukascopy traders, including rokasltu, who assumes that "As even not so good results from US didn't invoke any JPY strengthening I think USD/JPY will go higher without substantial retreats until 110. During this week I think it will go up around 100 pips."
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