© Dukascopy Bank SA
During the trading week ended December 18, the USD/JPY pair was developing in a rather positive manner. Nevertheless, the pair decreased to a new six week low on Monday amid solid Japanese data, while questions over the Wednesday's path of the US central bank was hitting the buck. On Wednesday, the Yen declined for the second straight session as the Federal Open Market Committee (FOMC) decision looms, with a weaker Yen playing in favor of Japanese equity markets which added firm gains on Wednesday. The next day, the US dollar was advancing and was boosted by the positive Federal Open Market Committee (FOMC) decision on Wednesday, which sent the Greenback higher against its major peers. During the London session, the pair was trading at 122.35 yen and stronger on the day. The pair is expected to stay weaker in the Christmas day ahead and the pair might continue in bearish tracks, mainly due to the technical situation.
Distribution between bullish and bearish votes improved considerably in favor of the former this week, as long votes reached 62%, which expect the American dollar to advance. The average prediction for December 25, however, is placed around the 121.2 level. The upcoming working week is supposed to be unusually rich on Japanese data. Among important news from this country, traders can wait for The Bank of Japan announcement of minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options, on Wednesday.
© Dukascopy Bank SA