© Dukascopy Bank SA
During May 18-22 trading week, the USD/JPY currency cross performed in a strong bearish trend, as the pair lost around 300 pips in five working days and crossed a number of considerable support levels. The Euro started to extend losses against the Dollar on Monday, dropping to fresh session lows as worries over the prospect of a Greek default weighed. Moreover, the next day the Greenback strengthened due to impressive data on US building permits and housing starts. The number of building permits rose by 10.1% in April to 1.143 million units from March's total of 1.038 million while analysts expected building permits to climb by 2.2% to 1.060 million units in March. Nevertheless, the single European currency gained ground on Thursday, after data showed that France's private sector strengthened this month, but gains were held in check, as business activity in the wider Euro area eased for the second month in a row. The Euro erased gains on Friday, dropping to nearly one-month lows due to the release of relatively positive US inflation data, and as investors were anticipating comments by Federal Reserve Chair Janet Yellen later in the day.
As a result, the pair closed the week on the 1.0989 mark.
Finally, Dukascopy traders, decided on pair's perspectives, as now around 90% of votes are bearish. Among important news, consumer confidence and business climate data are due to be published on Thursday. From the American side, Tuesday will be rich day on US fundamental data. Traders could pay additional attention to the durable goods orders, Markit services PMI and new home sales, on the same day. While on Friday, data on US gross domestic product for the first quarter is scheduled to be announced.
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