© Dukascopy Bank SA
Opposite to EUR/USD and GBP/USD crosses, the Dollar/Yen currency pair was developing in a quite calm manner. The period has started on the neutral note, as the Greenback was mostly flat versus its Japanese counterpart until the end of Friday, when some signs of an upcoming decline started to appear. The Dollar slipped lower against the other major currencies on Friday, as the Federal Reserve's decision to leave interest rates unchanged this month weighed on demand for the Greenback. The Dollar sold off sharply after the US central bank left short-term interest rates unchanged on Thursday, amid concerns over soft inflation and the effects of recent market volatility on the US economy.
The survey among Dukascopy Community members shows that traders are still undecided over the pair's future perspectives, votes are divided almost equally. csan86, one of traders who participated in this week's Community Forecasts quiz, says that "This pair is still moving in an symmetrical triangle. It could not break out of this pattern and it was getting narrower range day by day. There are some signs for higher possibility for a breakout on the downside (huge double bottom on daily chart, powerful breakdowns with high volume with huge and healthy candles)." However, another trader, Jignesh, supports bullish opinion and suggests that "USDJPY had a bearish initial reaction to the Fed statement last week, but has already recovered quite a bit. With the strong recent correlation with the equity market, this pair is viewed as bullish as a lack of interest rate hike should in theory be bullish for the equity markets".
Concerning the economic news, American data on durable goods orders, initial jobless claims and new home sales will be announced on Thursday, while the next day, Japanese data on consumer inflation.
© Dukascopy Bank SA