By ForexMansion.com
With the absence of new developments and updates regarding the Japanese crisis during the past week, investors somewhat turned away from focusing on the Japanese crisis and returned to Japan’s and global economies developments and fundamentals.
Friday’s U.S GDP came better than expected which helped the USD/JPY to break through the narrow trading range that dominated the pair during the last period.
Expectations are still biased to the downward movement of the pair over the medium term; however, the economic data from Japan may affect the pair’s volatility over the short-term.
Tuesday will witness the release of a number of economic data prior to the beginning of the day by few minutes. Japan will announce at 23:30 GMT the unemployment rate for the month of February, which is expected to remain steady at 4.9%.
At 23:50 GMT there we await the retail trade index during February, where it is expected to rise by 0.5% compare to the previous reading of 4.1%. The decline in retail sales may help the yen rise against the dollar, where this data could prompt investors to return back to worries about the Japanese economic status and push them to by the yen as a safe haven again.
We still have to stay focused on the development in the market sentiment as investors grow wary again over the nuclear crisis in Japan. While on the other hand the data from the US later today will affect the overall movement.
On Monday today as of 12:30 GMT, the Income Report from the US will be influencing the movement. US spending is expected to have inched higher to 0.5% in February from 0.2%. On 14:00 GMT US housing data and Pending Home Sales might be further support as housing activity is expected with some improvement.
