The USDJPY tends to be more responsive to key trade and consumption data from the US. Last week was a bad week for the US Dollar, and the USDJPY also reflected the general weakness seen in the major USD pairs, despite marginal improvements in the Core CPI and Retail Sales data.
Key data for the week are:
- US Jobless Claims
- Building Permits
These two data reports may provide some drive for short-term price movements on the USDJPY. However, the main driver for price movements in the USDJPY and other USD pairings at the moment seems to be the realignment of trade positions from the major players to position themselves to benefit from expected tightening of monetary policy in Europe, Canada, and Australia. The increasing expectancy of at least two rate hikes by the US Fed Reserve does not seem to be providing much impetus for the USD to perform at the moment.
Usd/Jpy Daily Supply & Demand Zones:
Usd/Jpy 4h Supply & Demand Zones: