USD/JPY (current price: 111.26)
The Japanese Yen is back above the crucial 110 level as the currency continues to trade in a consolidation pattern against the Dollar. The currency was under pressure following the release of the Japanese CPI report that provided mixed, but mostly negative signals regarding inflation in the country. The U.S. GDP grew by 0.8% in the first quarter, just as analysts expected, but the outlook for the second quarter got more positive in the past couple of weeks, and that helped the dollar on Friday as well.
Our assessment: Yellen’s speech sent the pair higher in late trading, and traders might see rates below above 112 this week if the BOJ continues with its dovish rhetoric
