Investing.com – Last week saw the U.S. dollar tumble to a 15-year low against the yen, amid expectations that the Federal Reserve will further ease monetary policy in the coming months and as Japanese authorities held back from currency market intervention.
USD/JPY hit 81.72 on Friday, the pair’s lowest since April 26, 1995; the pair subsequently consolidated at 81.90 by close of trade, plummeting 1.62% over the week.
The pair is likely to find support at 79.75, the low of April 19, 1995 and resistance at 83.25, the high of October 6.
The Bank of Japan's decision on Tuesday to cut interest rates to near zero and embark on a monetary easing program underlined expectations that the Fed would follow suit. Concerns escalated following the release of U.S. data on Friday which showed that non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month.
However Japanese authorities held back from fresh currency market intervention ahead of Saturday’s meeting of financial ministers and central bankers from the G20 nations amid simmering tensions among countries vying to keep their currencies weak and exports competitive.
Next week, the U.S. is to publish its closely watched weekly report on initial jobless claims as well as key data on inflation, retail sales and consumer sentiment. In addition, Federal Reserve chairman Ben Bernanke is to speak at two public engagements, while the bank is to publish the minutes of the most recent meeting of its monetary policy committee.
Meanwhile, Japan is to publish official data on machinery orders while the Governor of the Bank of Japan is expected to speak at a public engagement.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/JPY.
Monday, October 11
Markets in the U.S. will remain closed on Monday for the Columbus Day holiday, while markets in Japan will be closed in observance of Health Sports Day.
Tuesday, October 12
The U.S. is to publish the minutes of the most recent meeting of the Federal Reserve’s Federal Open Market Committee. The minutes provide in-depth insights into the economic conditions that influenced their vote on where to set interest rates.
Also Tuesday, Japan is to publish official data on core machinery orders, a leading indicator of manufacturing production. The country is also to publish official data on household confidence and bank lending.
Wednesday, October 13
The U.S. is to release key data on import prices, while Federal Reserve Chairman Ben Bernanke is due to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Also Wednesday, Japan is to publish a report on the change in the price of goods sold by corporations, a leading indicator of consumer inflation.
Thursday, October 14
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of overall economic health. The country is also to publish a report on producer prices, a leading indicator of consumer inflation. Later in the day, the U.S. will publish official data on its trade balance, the difference in value between imported and exported goods during the month, as well reports on crude oil and natural gas stockpiles.
Friday, October 15
The U.S. is to round up the week by producing official data on retail sales, business inventories and its consumer price index, while the University of Michigan is to release preliminary data on consumer sentiment and inflation expectations. Also Friday, the Federal Reserve Bank of New York is due to release key data on the city’s manufacturing sector while Fed chair Ben Bernanke will be speaking at a public engagement.
Meanwhile, Japan is to release data on industrial production, while the governor of the country’s central bank, Masaaki Shirakawa is to speak at a public engagement in Tokyo. His comments will be closely watched for any indications of the future direction of monetary policy.
USD/JPY hit 81.72 on Friday, the pair’s lowest since April 26, 1995; the pair subsequently consolidated at 81.90 by close of trade, plummeting 1.62% over the week.
The pair is likely to find support at 79.75, the low of April 19, 1995 and resistance at 83.25, the high of October 6.
The Bank of Japan's decision on Tuesday to cut interest rates to near zero and embark on a monetary easing program underlined expectations that the Fed would follow suit. Concerns escalated following the release of U.S. data on Friday which showed that non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month.
However Japanese authorities held back from fresh currency market intervention ahead of Saturday’s meeting of financial ministers and central bankers from the G20 nations amid simmering tensions among countries vying to keep their currencies weak and exports competitive.
Next week, the U.S. is to publish its closely watched weekly report on initial jobless claims as well as key data on inflation, retail sales and consumer sentiment. In addition, Federal Reserve chairman Ben Bernanke is to speak at two public engagements, while the bank is to publish the minutes of the most recent meeting of its monetary policy committee.
Meanwhile, Japan is to publish official data on machinery orders while the Governor of the Bank of Japan is expected to speak at a public engagement.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/JPY.
Monday, October 11
Markets in the U.S. will remain closed on Monday for the Columbus Day holiday, while markets in Japan will be closed in observance of Health Sports Day.
Tuesday, October 12
The U.S. is to publish the minutes of the most recent meeting of the Federal Reserve’s Federal Open Market Committee. The minutes provide in-depth insights into the economic conditions that influenced their vote on where to set interest rates.
Also Tuesday, Japan is to publish official data on core machinery orders, a leading indicator of manufacturing production. The country is also to publish official data on household confidence and bank lending.
Wednesday, October 13
The U.S. is to release key data on import prices, while Federal Reserve Chairman Ben Bernanke is due to speak at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Also Wednesday, Japan is to publish a report on the change in the price of goods sold by corporations, a leading indicator of consumer inflation.
Thursday, October 14
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of overall economic health. The country is also to publish a report on producer prices, a leading indicator of consumer inflation. Later in the day, the U.S. will publish official data on its trade balance, the difference in value between imported and exported goods during the month, as well reports on crude oil and natural gas stockpiles.
Friday, October 15
The U.S. is to round up the week by producing official data on retail sales, business inventories and its consumer price index, while the University of Michigan is to release preliminary data on consumer sentiment and inflation expectations. Also Friday, the Federal Reserve Bank of New York is due to release key data on the city’s manufacturing sector while Fed chair Ben Bernanke will be speaking at a public engagement.
Meanwhile, Japan is to release data on industrial production, while the governor of the country’s central bank, Masaaki Shirakawa is to speak at a public engagement in Tokyo. His comments will be closely watched for any indications of the future direction of monetary policy.