© Dukascopy Bank SA
USD/JPY had been advancing sharply for some time, and managed to rose to its highest level in 13 years on Thursday, boosted by expectations, that the economic recovery in the US would accelerate the timeline for higher interest rates. Moreover, the Japanese Yen gained in Asia on Friday, as industrial output showed solid growth potential, but other data on prices, spending and jobs was mixed. The industrial output rose 1.0% in April, better than the previous data of 0.8%. Meanwhile, unemployment ticked down to 3.3% in the preceding month from 3.4% a in March.
Meanwhile, this week Dukascopy Community members predict the pair advance further, as bullish side of the votes picked up to 83.3%, meaning that the appreciation of the Japanese currency will continue. Similar to all USD-crosses, traders should pay attention to the government report on nonfarm payrolls, the unemployment rate and average earnings on June 5. From Japanese side, the Foreign bond investment will be released on Wednesday. While on Thursday, the Bank of Japan Governor Haruhiko Kuroda will hold a press conference about monetary policies.
A move towards 125.1 major level is suggested by a number of Dukascopy traders, including geula4x, who assumes that "USD/JPY seems very bullish on the daily chart. Price has exploded higher, breaking to new highs towards 124.50 round number. Support lies around 122.00 round number, which has previously capped price on May 10." Moreover, another trader, piter 44, claims that "Sky is the limit, sooner or later we will reach 130 level on this pair and it is hard to predict the pace. I would say that 126 mark at the end of this week is possible."
© Dukascopy Bank SA