© Dukascopy Bank SA
The USD/JPY currency cross was moving mostly to the north during the previous trading week, as it continued with the long-term trend to gain value, reflecting strength of the US Dollar due to strong performance of the world's largest economy. On Monday, the Greenback came under unexpected selling pressure as liquidity was thin amid no fundamental news. However, in the middle of the week, the Dollar traded in a narrow range versus the Japanese yen, with American durable goods orders taking center stage during the North American session. Moreover, the Japanese currency found support after BoJ Governor Haruhiko Kuroda reiterated that domestic inflation is on track to reach the 2% target and further indicated that another expansion of QQE is unlikely at present. Nevertheless, Japan's core consumer price index, excluding fresh food, rose just 0.1% in November from a year earlier. The increase was the first in five months, but far from Japan's 2% inflation target.
Market sentiment on the present currency cross changed significantly from the previous trading week, as now around 53% of Dukascopy Community members suggest that Dollar will continue appreciating versus the Japanese yen. In addition to that, traders think that the pair will consolidate in its value to reach the 120.1 level by the end of this week on January 1, 2015. Among important news from the American side, Initial Jobless Claims and Chicago Purchasing Manager's Index is going to be announced on Thursday.
© Dukascopy Bank SA