© Dukascopy Bank SA
During the observed period ended April 1, the USD/JPY pair was developing in a rather calm manner; however, still posting a tendency of decline. The pair opened Monday in a pure green zone, mostly due to the strong Dollar while the Yen was influenced by divergence between Bank of Japan and Federal Reserve monetary policies. However, in the middle of the week, the situation has changed significantly and Japanese yen became one of the top performers, following Fed Chair Yellen's dovish speech which sent the US dollar broadly lower. Moreover, the Yen earned more than 100 pips after the speech leaving levels around mid 113. It continued to trade at these levels for next 24 hours. Still, with Monday's market opening level of 113.5, the pair was not able to gain any weekly value and closed at 111.7 back on April 1. Traders, however, were undecided on pair's perspectives, as 50% of all votes were bullish and 50% bearish.
The present working week is not supposed to be rich on Japanese data either, as among important news from this country, traders can wait for Leading economic index and Foreign Bond Investment on Wednesday. The next day, in turn, from the American side traders could pay additional attention to the continuing jobless claims announcement as well as Fed's Yellen Speech. Speaking about the traders opinions, bearish Jignesh suggests that "The pair through a large part of 2012-2015 had the reputation of a pair you do not take to the short side. However, the pair has turned on all time frames, and clearly bearish. Last week's failures at highs will leave bulls disappointing and likely to further lose their faith in the BOJ whose attempts have not succeeded in holding up the pair."
© Dukascopy Bank SA