The USD/JPY pair advanced early Thursday to trade near its highest level in four weeks, where the Bank of Japan board members cleared through September 6-7 meeting minutes that the current economic situations in Japan may force the policy makers to take extra steps to ease the monetary policy.
The Japanese yen retreated against the dollar and other major currencies after the BOJ’s minutes showed more downside risks to the Japanese economy, which could result in further policy easing.
However, the Japanese yen soon recover its losses against the dollar and its major counterpart after the markets absorbed the BOJ’s announcement, and the current market sentiment returned to control the movements to push the yen higher once again as a safe haven.
On Friday at 12:30 GMT, the U.S. economy will issue the Import Price Index for September, where it had a previous reading of – 0.4% and expected to come at – 0.5%, while the annual Import Price Index had a prior reading of 13.0%.
The Advance Retail Sales for September will be also due at 12:30 GMT as the index is expected to rise moderately by 0.2% less autos after 0.1% gain in August and excluding gas and auto sales are also expected with 0.2% rise after 0.1%.
At 13:55 GMT the University of Michigan confidence for October is expected with a rise to 60.0 from 59.4; and finally at 14:00 GMT Business Inventories for August are expected to hold at 0.4%.
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