Investing.com - The dollar ended the week sharply lower against
the yen on Friday amid speculation that the Federal Reserve will
scale back its asset purchase program this year.
USD/JPY hit session lows of 100.67 Friday, before paring back
losses to settle at 101.29, down 0.71% for the day and extending
the week's losses to 1.43%.
The pair is likely to find support at 100.53, the low of May 10 and
resistance at 102.57, Friday's high.
On Wednesday Fed Chairman Ben Bernanke said a decision to scale
back the U.S. central bank's USD85 billion-dollar-a-month asset
purchase program could be taken in the "next few meetings"
depending on economic data.
The comments came during testimony on the economy and monetary
policy to the U.S. Joint Economic Committee in Washington.
The dollar rose to fresh four-and-a-half year highs against the yen
earlier Wednesday after Bernanke said in prepared remarks that a
premature tightening of monetary policy carried substantial risks
to the economic recovery.
Meanwhile, Wednesday's minutes from the Fed's May meeting showed a
"number" of policymakers were prepared to taper bonds purchases as
soon as June.
The dollar hit two-week lows against the yen on Friday after
official data showed that U.S. durable goods orders rose 3.3% in
April, outstripping expectations for a 1.5% increase.
The Bank of Japan left monetary policy unchanged following its
policy meeting on Wednesday, in a widely expected decision.
The bank also upgraded its economic outlook, saying growth had
started picking up.
Also Wednesday, official data showed that Japan posted a trade
deficit of JPY0.76 trillion in April, the tenth consecutive monthly
deficit. Exports rose 3.8% from a year earlier, while imports were
In the week ahead, volumes look likely to remain thin on Monday,
with public holidays in the U.K. and the U.S.
Investors will be looking ahead to BoJ minutes as well as data on
Japanese retail sales. The U.S. is to release data on the housing
sector, consumer confidence and initial jobless claims.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, May 27
The Bank of Japan is to release the minutes of its most recent
monetary policy meeting. The minutes contain valuable insights into
economic conditions from the bank's perspective.
U.S. markets are to remain closed for the Memorial Day holiday.
Tuesday, May 28
The U.S. is to produce private sector data on house price
inflation, in addition to data on consumer confidence, a leading
Wednesday, May 29
Japan is to release government data on retail sales, the government
measure of consumer spending, which accounts for the majority of
overall economic activity.
Thursday, May 30
The U.S. is to release revised data on first quarter economic
growth, in addition to the weekly report on initial jobless claims
and data on pending home sales.
Friday, May 31
Japan is to produce official data on household spending and
inflation as well as preliminary data on industrial production, a
leading economic indicator.
The U.S. is to round up the week with revised data on consumer
sentiment from the University of Michigan, as well as data on
personal income and expenditure and a report on manufacturing
activity in Chicago.
offers an extensive set of professional tools for the Forex,
Commodities, Futures and the Stock Market including real-time data
streaming, a comprehensive economic calendar, as well as financial
news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @