Community Forecasts for February 22-26: USD/JPY 1W Chart - Community Forecasts - Dukascopy Bank

Tue, 23 Feb 2016 13:12:05 GMT
Source: Dukascopy Bank SA
 
© Dukascopy Bank SA
The Japanese yen continued tumble against a strengthening Dollar on Monday, with the Yen's safe-haven status losing its appeal as market sentiment improved throughout the day. In the middle of the week, stocks in Europe and the US were seen advancing during the London session, indicating a risk-on approach is currently active on the markets. Therefore, the Yen failed to hold gains and dropped back to unchanged levels against the US dollar. From the Greenback perspective, housing and inflation macro data supported the US currency. US housing starts for January decelerated to 1,099K from 1,143K, while building permits ticked lower to 1,202K from 1,204K in December. Nevertheless, during the last day of the working week, the pair printed fresh daily lows following a short-lived spike boosted by US CPI, as core CPI rose 0.3%, showing the largest monthly increase since August 2011. 
This week, traders are expecting pure negative development of the pair, opening short position more often than long ones. The pair is likely to be driven by fundamental data from the United States, and the fact the greenback is bought in 90% of all cases across the board, is bolstering the case the pair can drop below 110 level. Concerning the traders' opinions, Besim76 believes that "The USD/JPY dipped 0.49% to trade at 112.66 as the yen gained again on Friday as markets shifted to safe haven trading. The dollar extended its decline against the yen Friday, logging its worst three-week stretch against the Japanese currency since June 2013." Meanwhile, majority of traders are short on the pair.

© Dukascopy Bank SA

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