© Dukascopy Bank SA
The Dollar/Yen currency pair traded in a mixed environment during the previous trading week. A strong positive movement was changed by a modest downside development and then, by an downward correction on Friday. The fundamental data released both in Japan and the United States drove the pair significantly. The Greenback held steady against the Japanese Yen on Tuesday, after the Bank of Japan left its monetary policy unchanged. Moreover, the BoJ maintained its stimulus programme, but cut its inflation outlook, citing temporary declines in oil prices. However, the Dollar fell on Friday, posting its second largest weekly loss against the Yen in two months, amid a selloff sparked by uncertainty over the future path of US monetary policy. The Fed statement dampened expectations for a mid-year rate hike, prompting investors to exit positions, which would benefit from a strong Dollar. Meanwhile, the Bank of Japan expanded it stimulus program in late October, amid concerns that falling oil prices could lower the inflation outlook. Taking into account stated above issues, pair finished the week at 120.02 mark.
Concerning present week, the sentiment experienced big changes, as vast majority of votes now are positive on the USD/JPY currency pair, namely 57.1% of them. The average prediction for Friday of this week is located around 119.8 major level, but more than 22% of all votes are placed in the range between 120.3 and 121.3 level. Among important fundamentals from the Japanese side, traders could pay attention to the national CPI, unemployment rate and retail trade data, which will be announced on Thursday. From the American side, the durable goods orders announcement is scheduled on Wednesday, while the final data on fourth quarter GDP will round up the week.
© Dukascopy Bank SA