USD/JPY Looks Set to Remain Steady
The beginning of the week saw the USD/JPY pairing rise to a three month high of 104.23, by the end of the week it had dropped below 103.80 as the US dollar eased slightly.
There has not been much economic news out of Japan in recent times so most of the movement has been the result of changes in the strength of the US dollar. In the coming days only the crude oil inventories are due to be released in the US so there may not be much change to the dollar’s value. On the other hand, it is looking increasingly likely that the US will begin to increase interest rates soon and this is contributing to the dollar’s strength and could see it gain over the coming week.
However, with the month coming to an end Japan is due to release a fair amount of economic data.
Data on household spending, the national core CPI, industrial production and retail sales is all due to be published. The Services Producer Price Index recently posted a gain of 3.7% after two consecutive gains of 3.6%. If the next set of data released shows similar gains then it could see the Yen break through the 104 line.