The yen decline against the U.S. dollar during the past week, bringing the pair to its highest level since 6 weeks at 83.73 and that after the improvement of employment data in the U.S. economy, along with forecasts that the European central bank and the US federal reserve bank are on their track to withdraw there monetary stimulus from the market, which is a sign of approaching a decision of increasing interest rates.
Expectations of a quick intervention of the Group of Seven to sell the yen in FOREX markets in case of rapid gains for the Japanese currency are declining the Japanese yen against the dollar, while the current recovery of the U.S. economy increases the demand for the greenback.
Monday will witness almost no economic data for the Japanese economy or the U.S. economy, forcing the pair to move based on the current market sentiment.
Expectations are still high in favor of the USD/JPY pair in the short term, supported by the optimistic outlook for the U.S. economy compared with the Japanese economy.
Originally posted here
