© 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 later changed by a modest downside development and then by an upward correction on Friday. In the middle of the week, the Dollar dropped sharply amid growing doubts whether the Federal Reserve will hike interest rates at the end of the year and being strongly affected by weak economic data from the US region.
In course of the week forecasts, sentiment among Dukascopy traders became rather weak for this currency pair, as 75% of trades expect bearish development. The average expectation is located around 118.4.
The market sentiment is shared by csan86, who assumes that "In my view, this pair is still risky to trade but after the last week's significant decline, I am expecting bearish continuation. It is still in the rectangle pattern but there is huge possibility for a bullish breakout." This opinion is supported by Berkeley who adds that "The USD/JPY posted slight losses last week, as the pair is dipping below the 120 level. This week is a quiet one, so side wards movement is expected". However, the trader, khalidamassi, is in minority, who expects the bullish development and thinks that "During the last week the recovery to 119 level after hitting 118 showed clearly that bear's attempt failed and pair may be ready to move up towards 121-122 again."
Eventually, on Thursday, the US is to produce data on initial jobless claims and existing home sales while from the Japanese side, no important data is expected.
© Dukascopy Bank SA