Investing.com – The U.S. dollar ended a volatile year’s trade against the yen close to a seven-week low on Friday, as Japanese exporters bought up the yen in thin trade, ahead of the year’s end.
USD/JPY hit 80.92 on Friday, the pair’s lowest since November 9; the pair subsequently consolidated at 81.17 by close of trade, shedding 2.08% over the week.
The pair is likely to find support at 80.53, the low of November 9 and resistance at 82.46, last Wednesday’s high.
The yen was the best-performing major currency against the greenback in 2010, soaring 14.7% even as the Japanese government took steps to weaken it.
In September, the Bank of Japan intervened in currency markets for the first time since 2004 to curb yen gains which threatened Japan’s export-led recovery. The yen initially tumbled from almost a 15-year high against the dollar before strengthening to 80.22 on November 1, the high for the year.
The yen benefited from increased safe haven demand as the euro zone was rocked by a debt crisis and after the Federal Reserve announced a second round of qualitative easing to support the U.S. economic recovery.
Next week, the U.S. is to release employment data for December on Friday while Federal Reserve Chairman Ben Bernanke is to testify before the Senate budget panel the same day.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 3
Markets in Japan are to remain closed for the New Year’s Day bank holiday.
The U.S. is to publish industry data on manufacturing activity, a leading indicator of economic health.
Tuesday, January 4
In the U.S., the Federal Reserve is to publish the minutes of its most recent monetary policy committee meeting, which provide an in-depth insight into the country’s economic and financial outlook. The country is also to publish official data on factory orders, a leading indicator of industrial production.
Wednesday, January 5
The U.S. is to publish data on ADP non-farm payrolls, which leads the government-released employment data by two days. Later in the day, the country is to publish a report on service sector growth, a leading indicator of economic growth as well as a report on crude oil stockpiles.
Thursday, January 6
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health.
Friday, January 7
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. Later in the day, the country is to publish a report on consumer credit.
USD/JPY hit 80.92 on Friday, the pair’s lowest since November 9; the pair subsequently consolidated at 81.17 by close of trade, shedding 2.08% over the week.
The pair is likely to find support at 80.53, the low of November 9 and resistance at 82.46, last Wednesday’s high.
The yen was the best-performing major currency against the greenback in 2010, soaring 14.7% even as the Japanese government took steps to weaken it.
In September, the Bank of Japan intervened in currency markets for the first time since 2004 to curb yen gains which threatened Japan’s export-led recovery. The yen initially tumbled from almost a 15-year high against the dollar before strengthening to 80.22 on November 1, the high for the year.
The yen benefited from increased safe haven demand as the euro zone was rocked by a debt crisis and after the Federal Reserve announced a second round of qualitative easing to support the U.S. economic recovery.
Next week, the U.S. is to release employment data for December on Friday while Federal Reserve Chairman Ben Bernanke is to testify before the Senate budget panel the same day.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 3
Markets in Japan are to remain closed for the New Year’s Day bank holiday.
The U.S. is to publish industry data on manufacturing activity, a leading indicator of economic health.
Tuesday, January 4
In the U.S., the Federal Reserve is to publish the minutes of its most recent monetary policy committee meeting, which provide an in-depth insight into the country’s economic and financial outlook. The country is also to publish official data on factory orders, a leading indicator of industrial production.
Wednesday, January 5
The U.S. is to publish data on ADP non-farm payrolls, which leads the government-released employment data by two days. Later in the day, the country is to publish a report on service sector growth, a leading indicator of economic growth as well as a report on crude oil stockpiles.
Thursday, January 6
The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health.
Friday, January 7
The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. Later in the day, the country is to publish a report on consumer credit.