Forex - USD/JPY weekly outlook: June 24 - 28
Investing.com - The dollar ended the week sharply higher against
the yen on Friday amid expectations the Federal Reserve will begin
to taper off its bond-buying program by the end of this year.
The dollar strengthened against the yen, with USD/JPY climbing 3.82% for the week to settle at 97.88, the largest weekly gain since December 2009.
The pair is likely to find support at 96.85, Friday's low and resistance at 99.45, the high of June 6.
The dollar rallied after Fed Chairman Ben Bernanke said Wednesday that the bank could begin slowing its USD85 billion-a-month bond purchasing program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
The bank said it expects the U.S. economy to grow between 2.3% and 2.6% in 2013. The Fed also said it expects the unemployment rate to fall to between 6.5% and 6.8% by the end of 2014 and inflation to edge closer to its 2% target.
The yen edged higher against the euro on Friday, with EUR/JPY slipping 0.10% to 128.35, trimming the week's gains to 2.13%.
The euro came under pressure after Greece's Democratic Left party withdrew from the coalition government in protest over planned public sector layoffs, leaving the government with only a slim majority in parliament.
In the week ahead, investors will be closely watching U.S. data on durable goods orders, jobless claims and consumer confidence for signs that the economic recovery is on track. Japan is to release a series of economic indicators on Friday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events on this day.
Tuesday, June 25
The U.S. is to publish official data on durable goods orders, a leading indicator of production, as well as closely watched reports on consumer confidence and new home sales.
Wednesday, June 26
The U.S. is to release revised data on first quarter economic growth as well as government data on crude oil stockpiles.
Thursday, June 27
The U.S. is to release the weekly government report on initial jobless claims along with data on personal income and expenditure, which is to be followed by private sector data on pending home sales.
Friday, June 28
Japan is to release a series of economic data, including reports on household spending, inflation, retail sales and preliminary data on industrial production.
The U.S. is to round up the week with a report on manufacturing activity in Chicago and revised data from the University of Michigan on consumer sentiment.
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