USD/JPY (current price: 104.77)
The Japanese Yen continued to slide lower against the U.S. Dollar in the last couple of days, despite the mixed economic news coming out from the U.S. The Japanese Services PPI Index came in at 0.4%, slightly above the expected 0.2%, but that wasn’t enough to change the short-term trend in the currency. Central bank related trading continues to dominate the market before the Federal Reserve’s and the Bank of Japan’s scheduled monetary meetings next week.
Our assessment: USD/JPY continues to trade is below the all-important 105.50 resistance, although it’s getting further away from the recent lows near 100.
