© Dukascopy Bank SA
The Dollar/Yen currency pair traded in a purely positive environment during the previous trading week, however green movements during the first days was changed by a steep downside correction on Friday. The fundamental data released both in Japan and the United States drove the pair significantly.
On Monday, the pair booked significant gains against the US dollar after Prime Minister Shinzo Abe decided to delay the increase in the sales tax by two-and-a-half years, while an ex-Bank of Japan official spoke on monetary policy. However, at the end of the period, the yen shot up against the dollar to levels unseen in about three weeks after the closely watched non-farm payrolls report from the US came in much weaker than expected. The US NFP report revealed that American job creation tumbled in May, with the economy adding just 38,000 positions. That's steeply lower than the 160,000 estimated by the market.
Participants of the Dukascopy weekly quiz were largely bullish on the USD/JPY pair, as 63.6% of all votes were positive; however, the average prediction for Friday stayed just above the 110.1 mark. Currently, Dukascopy traders became much more bearish on their future view of pair's development, being that 66.7% of respondents are now waiting the US Dollar continues to fall in value. The median forecast for Friday of this week slipped to 106.70 from the current trading level. Among influential events, from the American side, Michigan consumer expectations and the Federal Budget for May will be published on Friday.
© Dukascopy Bank SA