USD/JPY (current price: 111.05)
The Yen recovered some of the losses that it suffered on Monday compared to its major peers. The safe haven currency might be on the verge of a volatile week as the Bank of Japan releases its Monetary Statement on Thursday. BOJ governor Kuroda hinted on new easing-measures on Friday, and any disappointment regarding those plans could result in a strong rally for the Yen, and Wednesday’s FED release could also heavily influence the pair.
Our assessment: The pair left its long-term declining trend channel last week, but further correction looks likely today, before a possible rally up to the 115 level following the FED.
