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The USD/JPY currency cross was moving mostly to the north during the previous trading week, as it continued with the long-term trend to gain value. Starting the week at 116.87 level, the pair did not make any immediate attempt to jump significantly and lost ground to reach the weekly low at 115.46 later that day. The Greenback was boosted after the Commerce Department's report showed that US retail sales rose 0.3% in October, ahead of forecasts for a 0.2% increase. On Thursday, the pair rose to a seven-year high of 118.96 The pair was notably influenced by data from both countries, including Japanese prelim GDP, which unexpectedly declined 0.4% in the third quarter and the country's economy officially entered a period of recession. In the US, the FOMC meeting minutes revealed no major news about a potential a rate hike the next year. Additionally, it was noted that the Fed is not overwhelmingly concerned about weak growth in Japan. All in all, solid data from on inflation, home sales and manufacturing helped the US dollar gain value last week. These positive factors pushed the pair up to close the week at 117.72.
It seems that even more market participants are betting on the US dollar rise in the future. This week around 81% of Dukascopy Community members suggest that the Buck will continue appreciating versus the Japanese yen. Despite that, traders think that the pair will consolidate in its value to hover around the 117.4 level on Friday. This Monday, the Governor of the Bank of Japan noted that the regulator is ready to inject even more money into the economy in case of slow growth. Concerning other fundamental from Japan, industrial production and retail sales data for the country are due to be released on Thursday.
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