USD/JPY: forecast for July 13-19
USD/JPY was driven mostly by the global risk sentiment on the past week. At the beginning of the week the pair dipped to 120.50 on the wave of risk aversion, but later has recovered back above 122 yen. Next resistance is seen at 123.00 yen - this is where the trend resistance lies.
Next week the market will likely be led by the same factors - concerns about Greece and China. On Wednesday the Bank of Japan will hold its policy meeting - we expect no changes in monetary policy to be announced. However, the market could het some comments about the consequences of the Chinese events for the Japan's economy. This could cause renewed expectations for a BOJ stimulus in the coming months - bullish factor for the USD/JPY.
Chart. Daily USD/JPY