Investing.com – Last week saw the U.S. dollar decline against the yen for the second week, amid speculation that the Federal Reserve may announce a second Treasury-purchasing program, known as quantitative easing.
USD/JPY hit 83.15 on Friday, the pair's lowest since September 15; the pair subsequently consolidated at 83.20 by close of trade, tumbling 1.30% over the week.
The pair is likely to find support at 82.92, the low of September 15 and a 15-year low and resistance at 85.76, the high of September 21.
On Friday, Federal Reserve Bank of New York President William Dudley, speaking in relation to the U.S. economy said that "The current situation is wholly unsatisfactory". Meanwhile, Chicago Fed President Charles Evans said that further steps to stimulate the U.S. economy may be "desirable".
However both officials stopped short of specifically endorsing a second round of quantitative easing. Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
Japanese Prime Minister Naoto Kan on Friday reiterated a threat of further intervention in the currency market, saying, "we have [intervened in currency markets], and will take decisive action when necessary." The strong yen is a major burden on Japan's largely export based economy.
Next week, the U.S. is due to release the closely watched ADP report on non-farm employment change ahead of Friday's government data on non-farm payrolls. In addition, the country is to release official data on initial jobless claims, manufacturing activity and pending home sales.
Meanwhile, the Bank of Japan is to announce its benchmark interest rate at a press conference. The bank is also to publish the minutes of the last meeting of its monetary policy committee.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/JPY.
Monday, October 4
The U.S. is to start the week by releasing official data on pending home sales and factory orders, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Also Monday, Japan is to release data on average cash earnings.
Tuesday, October 5
The U.S. is due to release official data on services sector growth, a leading indicator of economic health.
Meanwhile, the Bank of Japan will announce its benchmark interest rate. The announcement will be followed by a closely watched press conference, which will be scrutinized for any clues to the future direction of monetary policy.
Wednesday, October 6
The U.S. is to release a key report on ADP non-farm employment change. This data is viewed as an accurate prediction of the governments report on non-farm payrolls released two days later. Also Wednesday, the U.S. is to publish data on crude oil inventories.
Elsewhere, the Bank of Japan is to publish its monthly report, which is a summary of the data the bank examined before setting the benchmark interest rate.
Thursday, October 7
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health as well as official data on consumer credit and natural gas inventories.
Meanwhile, the Bank of Japan is to publish the minutes of its monetary policy committee meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.
The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy as well as official data on its current account.
Friday, October 8
The U.S. is to round up the week by producing official data on non-farm employment change as well as data on the country's unemployment rate, both leading indicators of overall economic health.
Meanwhile, Japan will conclude the week with data on consumer spending, a leading indicator of economic health.
USD/JPY hit 83.15 on Friday, the pair's lowest since September 15; the pair subsequently consolidated at 83.20 by close of trade, tumbling 1.30% over the week.
The pair is likely to find support at 82.92, the low of September 15 and a 15-year low and resistance at 85.76, the high of September 21.
On Friday, Federal Reserve Bank of New York President William Dudley, speaking in relation to the U.S. economy said that "The current situation is wholly unsatisfactory". Meanwhile, Chicago Fed President Charles Evans said that further steps to stimulate the U.S. economy may be "desirable".
However both officials stopped short of specifically endorsing a second round of quantitative easing. Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
Japanese Prime Minister Naoto Kan on Friday reiterated a threat of further intervention in the currency market, saying, "we have [intervened in currency markets], and will take decisive action when necessary." The strong yen is a major burden on Japan's largely export based economy.
Next week, the U.S. is due to release the closely watched ADP report on non-farm employment change ahead of Friday's government data on non-farm payrolls. In addition, the country is to release official data on initial jobless claims, manufacturing activity and pending home sales.
Meanwhile, the Bank of Japan is to announce its benchmark interest rate at a press conference. The bank is also to publish the minutes of the last meeting of its monetary policy committee.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/JPY.
Monday, October 4
The U.S. is to start the week by releasing official data on pending home sales and factory orders, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
Also Monday, Japan is to release data on average cash earnings.
Tuesday, October 5
The U.S. is due to release official data on services sector growth, a leading indicator of economic health.
Meanwhile, the Bank of Japan will announce its benchmark interest rate. The announcement will be followed by a closely watched press conference, which will be scrutinized for any clues to the future direction of monetary policy.
Wednesday, October 6
The U.S. is to release a key report on ADP non-farm employment change. This data is viewed as an accurate prediction of the governments report on non-farm payrolls released two days later. Also Wednesday, the U.S. is to publish data on crude oil inventories.
Elsewhere, the Bank of Japan is to publish its monthly report, which is a summary of the data the bank examined before setting the benchmark interest rate.
Thursday, October 7
The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health as well as official data on consumer credit and natural gas inventories.
Meanwhile, the Bank of Japan is to publish the minutes of its monetary policy committee meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.
The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy as well as official data on its current account.
Friday, October 8
The U.S. is to round up the week by producing official data on non-farm employment change as well as data on the country's unemployment rate, both leading indicators of overall economic health.
Meanwhile, Japan will conclude the week with data on consumer spending, a leading indicator of economic health.