© Dukascopy Bank SA
The USD/JPY currency cross traded in highly-volatile and mixed environment during the December 28–January 1 working week; however, both Monday's opening level and Friday's closing level have almost perfectly fitted each other. The beginning of the week proved to be rather calm. However, the Greenback slightly declined against the Japanese yen on Thursday as traders digested questionable US data, but the USD/JPY remained in a rather holiday mood ahead of New Year's Eve. Nevertheless, the next day, the pair hit the new two-month low at 120.00 level during the US trading hours. At the end of the week, in Japan, banks remained closed due to the celebration of New Year, but the macro calendar and the stock exchange kept functioning in the US, though unveiling worse-than-expected macro data.
This week sentiment among Dukascopy traders has absolutely changed, as now 85% of traders predict the Yen to gain in value. Alongside, the average forecast for the end of the week is placed around the 121.1 level. Among important US news, markets will be waiting for the data on the trade balance while later on Wednesday, the US is also to release the monthly ADP nonfarm payrolls report, the ISM report on service sector growth and data on factory orders. Also, the Federal Reserve is to publish the minutes of its December meeting. On Friday, the US is to round up the week with the closely watched nonfarm payrolls report.
© Dukascopy Bank SA