The USD/JPY pair ended 2011 with a huge drop to reach its lowest level in five weeks, as risk aversion controlled the market sentiment before the beginning of 2012, which drove investors to abandon higher-yielding currencies.
The Japanese yen soared against most of its major counterparts which helped the yen to record more gains against the greenback, despite its strong performance versus other majors.
The FX markets witnessed a very thin trading with the beginning of the week, due to the New Year holidays, where the sideway trading will control the USD/JPY movements.
On Tuesday at 15:00 GMT, the U.S. economy will release the Construction Spending for November, where the previous reading was 0.8% and it’s expected to come at 0.5%.
The ISM Manufacturing for December will be up at the same time, and it’s expected to come at 53.2 from the prior 52.7.
On the other hand, the Federal Reserve Bank of America will release the FOMC minutes for Dec. 13 meeting at 19:00 GMT, where the bank statement will affect the pair’s movements.
Originally posted here
