USD/JPY: forecast for Sep 28-Oct 4
By Elizabeth Belugina
Hawkish comments from the Federal Reserve support US dollar kept USD/JPY above 119.00. At the same time, the market’s poor risk sentiment and moderate comments from the Bank of Japan didn’t let the pair to settle above 121.00. So far, the BOJ Governor Kuroda gave no hints that the central bank will ease policy soon.
The odds are that this sideways trend will continue this week. Market participants await new information and don’t want to initiate big new moves. Traders will await Chinese PMI figures on Thursday and the release of US non-farm payrolls on Friday.
The main events of Japanese economic calendar are the release of retail sales data on Tuesday and manufacturing and services PMIs on Wednesday.
The bulls need a clear break above 121.35 to move to 122.50. Support is at 118.50 ahead of strong support in the 116.60/00 area.