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2 Aug 2013
USD/JPY ends the week below 99.00
FXstreet.com (Córdoba) - The USD/JPY is on track to close the week below the 99.00 mark as a disappointing nonfarm payrolls report prevented the greenback to extend its recovery on Friday.
USD/JPY had risen over 250 pips since Wednesday and reached a high of 99.94 just before weak US employment data made the pair surrender half of its weekly gains in a matter of minutes.
The USD/JPY however found support at the 98.65 region and entered in a consolidation phase that has extended over the last hours of the week. At time of writing, USD/JPY is trading at 98.90, down 0.6% on the day, but still 0.9% above its Monday’s opening price.
BoJ next week
Next week, the BoJ will decide on monetary policy. Geoffrey Yu and Manik Narain, strategists at UBS expect no change in BoJ’s stance. “In the future, the BoJ remains open to additional stimulus if it forecasts that the economy will miss its 2% inflation target in two years' time”, they comment. “In the near term USDJPY is likely to be driven by Fed expectations given the BoJ is set to keep policy unchanged until Q4'13”.
USD/JPY had risen over 250 pips since Wednesday and reached a high of 99.94 just before weak US employment data made the pair surrender half of its weekly gains in a matter of minutes.
The USD/JPY however found support at the 98.65 region and entered in a consolidation phase that has extended over the last hours of the week. At time of writing, USD/JPY is trading at 98.90, down 0.6% on the day, but still 0.9% above its Monday’s opening price.
BoJ next week
Next week, the BoJ will decide on monetary policy. Geoffrey Yu and Manik Narain, strategists at UBS expect no change in BoJ’s stance. “In the future, the BoJ remains open to additional stimulus if it forecasts that the economy will miss its 2% inflation target in two years' time”, they comment. “In the near term USDJPY is likely to be driven by Fed expectations given the BoJ is set to keep policy unchanged until Q4'13”.