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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 dollar slid lower against the Yen on Monday as weak Chinese factory data added to concerns over slowing growth in the world's second-largest economy, sapping risk appetite. Eventually, the Dollar rose to two-and-a-half month highs against the yen, with USD/JPY up 1.16% to 123.15 late Friday, the most since August 21. The pair ended the week with gains of 2.2%, the strongest weekly performance since December.
According to traders, their votes divided almost totally bullish. "USDJPY is in a dangerous place as it is retesting a major down trend line to start the week. As well, the equity markets are approaching highs again. Without a major catalyst this week we can potentially see more of a range in this pair, with a bullish favored bias." said Jignesh. This opinion is supported by Likerty who believes that "USD/JPY showing very similar path for more USD strength as a fallow up after NFP Friday's impact. Looking forward for at least another spike above previous week highs and then - either around 123.20's or at 124.00 mark are the places to chance short entries for bearish turnaround."
The next week is not expected to be rich on Japanese economic announcements nevertheless, traders still could pay additional attention to the Japanese data on core machinery orders. From the American side, in the same day, the data on initial jobless could be closely watched.
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