By FX Empire.com
The USD/JPY pair dropped early Tuesday for the second straight day, as instability continues in financial markets amid the focus on the EU debt crisis which still kept the yen stronger against a volatile greenback.
The Japanese yen advanced against most of its major counterparts as a refuge, while the greenback retreated further against the euro and other major currencies, as anticipations that the Fed could start the third round of quantitative easing weakened the dollar.
On the other hand, the Japanese yen has its own battle where BOJ is still looking for the appropriate measure to prevent it’s currency from recording more gains and hurt the economy, as all the previous measures have failed.
On Wednesday at 12:30 GMT, the U.S. economy will release the Durable Goods Orders for September, where it’s expected to come at -0.7% from the previous -0.1%, while Durables Excluding Transportation is expected to come at 0.5% from the previous -0.1%.
New Home Sales for September will released at 14:00 GMT, with a previous reading of 295 thousand and it’s expected to rise to 300 thousand by 1.7%.
Read more daily and weekly Forex Analysis here.
