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The Greenback is expected to regain some of the early made losses this week, as according to the Dukascopy Community members, it will appreciate against the Euro, Sterling and Japanese Yen this week. Nevertheless, the Yen had strengthened earlier in the session after the Bank of Japan's decision to keep monetary policy unchanged. The Bank of Japan declined to increase its quantitative easing, but extended to March 2017 its goal for reaching 2% inflation. Japan's industrial output, in turn, grew an unexpectedly strong 1% in September month-over-month.
According to traders, their votes divided almost equally, however, bullish outlook has a significant advantage. "This pair consolidated above the new support on 120.359. As it broke out to the upside from the consolidating range it has been in for the last months. Top side is a break out to go retest the bottom of the previous high range at 123.750. Of course, a fail of the support will mean returning back to the ranging action of the last weeks and retest of the swing low." said nuonrg. This opinion is supported by Daytrader21 who believes that "The USD/JPY is a mess right now as it is almost unchanged YoY, the opening price of the year was at 119.80 and we're currently trading just at 120.60 it is really hard to make a case for both the bullish and bearish side of the market without having a clear break."
The next week is not expected to be rich on Japanese economic announcements nevertheless, traders still could pay additional attention to the BoJ minutes of its latest policy setting meeting on Thursday. From the American side, in the same day, the data on initial jobless claims as well as preliminary data on labor costs could be closely watched.
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