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The USD/JPY currency pair was the least volatile last week, with pair's volatility moving into the turbulence zone only in 40% of the time. The Greenback started to post strong signals already at the beginning of the week and rose on Tuesday, after the release of upbeat US consumer sentiment data which added to hopes for a potential US rate hike later this year. US consumers spent another 0.4% more in August, after monthly gains of 0.4% in July and 0.3% in June. The price index for personal consumption expenditures, the US Federal Reserve's preferred inflation gauge, was flat from July to August and up only 0.3% from a year earlier. The Conference Board's index of consumer attitudes rose from 101.3 in August to 103.0 in September, above the expected 96.1. Nevertheless, the Dollar turned lower against the other major currencies on Friday, after a weaker-than-expected US jobs report for September.
By the way, traders' votes divided absolutely equally. megajorko thinks that pair is very neutral during the last few weeks. He adds, that level 120 is a very strong magnet and it will be hard to move from it. Only a strong fundamental news will change the picture." Another trader, RacerX supports another outlook, "The 119.240 was last week's low. I think that the Fed is likely to provide clearer forward guidance soon. With that I speculate the Dollar will likely appreciate versus its counterparts. It also appears to be at the lower part of the expanding rising wedge that has been forming since the beginning of the year."
Among important fundamental statistics, on Wednesday, traders could pay attention to the announcement of Japanese benchmark interest rate as well as minutes of the last monetary policy meeting.
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