The USD/JPY pair dropped last week after risk aversion returned to the financial market, pushing the yen up against most of its major counterparts as a safe haven currency.
Expectations for the USD/JPY pair will depend on the market sentiment, which accordingly depend on the developments in the EU debt crisis.
The week will start in Asia with continued reaction to the final details from Brussels after Wall Street and Europe attempted to find the support in the measures from extending the support to the IMF to the new intergovernmental pact for the euro area and other nations that might join excluding UK. The support is there but not as strong and accordingly fluctuations will be evident this week.
On Monday at 05:00 GMT, the Japanese economy will release the annual Consumer Confidence for November where it’s expected to come at 38.5 from the previous reading of 38.6.
The U.S. economy will release the Monthly Budget Statement for November at 19:00 GMT where the deficit is expected to wider to $150 billion from $98.5 billion.
Originally posted here
