USD/JPY (current price: 101.85)
The Japanese Yen pushed higher on Monday, causing a sharp decline in the pair, as the broad Dollar rally faltered. Japanese Core Machinery Orders rose by more than expected, with a monthly gain of 4.9%, while the PPI was in line with expectations with a reading of -3.6%. With no reports coming out from the U.S. the Dollar reacted to the cautious words of two FED officials, as they talked about the dangers of low inflation to economic growth. The pair ended the day back below 102, after trending lower all day long.
Our assessment: The cross slid back inside the declining long-term trend channel before next week’s crucial central bank meetings, as the short-term picture remains neutral.
