© Dukascopy Bank SA
The Dollar/Yen currency pair traded in a mixed environment during the previous trading week, being that a neutral movement during first days was changed by a modest downside development and then by an upward correction on Friday. The Yen rallied against the Dollar on Wednesday, as Chinese shares continued to plunge overnight, bolstering demand for safe haven investments. Meanwhile, Chinese shares fell sharply on Wednesday, extending a broad based selloff despite fresh regulatory measures to restore investor confidence.
As the currency cross managed to hover around the same level from Monday to Friday, Dukascopy traders became much more bullish on their future view of pair's development, being that 62.5% of respondents are now waiting the US Dollar to fall in value. The median forecast for Friday of this week slipped to 123.70 from the current trading level. Among influential events, on Wednesday the Bank of Japan is supposed to release its monetary policy statement, while the US Consumer Price Index may have some noticeable effect on this currency pair as well.
On the other hand, some of Dukascopy weekly quiz participants tend to believe in a strong performance of the US Dollar to the north, as geula4x assumes that "USD/JPY sentiment is expected to be bullish this week, after Greece has reached an agreement with its creditors and other Euro Zone members. Support lies around 123.00 round number, which was previous resistance between July 8 and 10. Resistance lies around 125.70, which has capped price between June 5 and 8. Let's see if bulls can press a higher this week, as the immediate threat of Greece exiting the EZ was removed."
© Dukascopy Bank SA