Lower volatility leaves dollar-yen pair moving sideways
The Japanese yen (FXY) closed for the week ending June 23 at 111.3, depreciating against the US dollar by 0.39%. The Japanese yen traded on a sideways note for most of the previous week as political and economic uncertainties remained lower. The US Fed’s positive outlook combined with the Bank of Japan’s continued accommodative policy, tilting the markets towards selling Japanese yen (JYN) against the US dollar (UUP).
Traders remain bearish on the yen
As per the Commitment of Traders (or COT) report released on Friday, June 23, large speculators continued to remain short on the Japanese yen with net bearish contracts standing at 50,000. This data goes up to the Tuesday of the same week and it’s unlikely to have changed since then for lack of any market moving information.
What to expect from the yen this week?
A lot of economic data is scheduled to be reported from Japan this week. Indicators that are to be published this week include Services PPI on Monday, retail sales on Thursday, and the all-important inflation data on Friday. Inflation is expected to remain lower bound, adding to the worries of the Japanese central bank and supporting the accommodative stance of the Bank of Japan. The Japanese yen is expected to remain solid against the US dollar with support coming near the 111.00 zone.