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As always the USD/JPY pair is strongly affected by fundamental data from both the United States and Japan. Therefore, weaker-than-expected U.S. GDP figures and a bunch of positive data from Japan, including CPI, unemployment rate, industrial production as well as retail sales, pushed the pair 112 pips lower.
This week, however, the pair is moving higher, already climbing above a weekly pivot at 101.76. According to Dukascopy Community members, the pair will close at 102.22 on Friday, March 7. Additionally, more than 61% of traders are expecting the pair to appreciate. The key level for long traders is located at 102.26, represented by a weekly R1– just couple of pips above the consensus forecast. Some of the traders, however, are slightly concerned about pair's future prospects, as Bruce said "The Yen is not having momentum for some time, USD/JPY will still be consolidating during this week. Moreover, I don't think it will break 100 level for now." In contrast, some of the Community members are bearish, as Marius24 mentioned "the situation in Ukraine is not so good and more rumors of war are coming in the headlines, unfortunately. Having this in mind I expect more bearish moves from USD/JPY."
Amid a lack of fundamental data from the world's third largest economy, the pair will be highly vulnerable for any news from the United States. Vast majority of Dukascopy traders believe that non-farm payrolls, non-manufacturing PMI as well as ADP non-farm employment change will all have a positive impact on the greenback. In addition to that, amid growing tensions in Ukraine, investors can consider the U.S. Dollar as a safe haven, providing additional support for a bullish movement. Therefore, the outlook for this week is bullish, with the long traders aiming first at the consensus forecast and then at the recent high at 102.83
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