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The third very popular currency pair among traders, Dollar/Yen, showed a mixed performance during the previous week. For the first part of the week, the USD/Yen pair traded with no major changes, hovering around 114 level. However, the yen trimmed its advance toward the highest level since October 2014 amid speculation the Bank of Japan may intervene to arrest gains that threaten to undermine almost three years of monetary stimulus.
This week is considered to bring some important statistical data, including the national CPI and foreign investment in Japan stocks, while the next day, expected data announcement regarding leading economic index and coincident index. Moreover, US initial jobless claims are expected to be announced on Thursdays, while Gross Domestic Product is going to be released on Friday. It can support the USD/JPY pair at least at the current level of 1.11 mark.
Despite that, keeping in mind absolute bullish sentiment last week, now Dukascopy Community members are equally divided on the nearest future development of this currency pair. The median forecast is located slightly below the 112.9 mark for Friday of this week. As Jignesh expects, "USDJPY is in a clear bearish trend having just taking out some recent lows. COT positioning continues to show record net long JPY. Support at the lows has seen the pair rally so far. Correlations with the equity markets are no longer, while above daily support, we could see the pair consolidate and correct a bit higher, before we inevitably continue lower."
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