USD/JPY below 109.00, posts second weekly gain in a row

By FXStreet USD/JPY finished the week higher but on Friday it failed to hold above 109.00 and weakened during the American session, erasing all day’s gains and dropped toward 108.50 after reaching 2-week highs at 109.54 following stronger-than-expected US economic data.

USD/JPY, the best and the worst

While the US dollar was among the top performers, the yen was the opposite. On Friday, risk aversion favored the Japanese currency, but despite the rally it was unable to erase weekly losses. During Tuesday, it dropped in the market amid comments from Finance Minister Aso warning that they will intervene in the market if moves are one-sided.

It is the second weekly gain in a row for USD/JPY that is recovering after falling last week to 105.50, the lowest level since October 2014.

Next week

“In the US, the most important release next week is the minutes from the April FOMC meeting due on Wednesday. The minutes will likely show that the FOMC members have had a rich discussion and that the committee is divided. Since the April jobs report was weak we nonetheless think the door for a June hike is closed no matter what the minutes say”, said analysts from Danske Bank. …read more

Source:: FX Street