By FX Empire.com
The USD/JPY pair dropped early Thursday amid risk aversion, which is still dominant in the FX market increasing demand for the Japanese yen as a haven, while the US dollar retreated against the dollar after its previous gains.
The ongoing concerns regarding the EU debt crisis and the pessimistic fundamentals from major economies drove investors to abandon higher-yielding currencies and focus on the yen.
On the other hand, the greenback is weakening against the euro in a correctional movement after its previous gains, where it soared by 1.2% against the euro, which is helping the Japanese currencies to record more gains.
On Friday at 23:30 GMT (Thursday), Japan will release the annual National Consumer Price Index for October, where it’s expected to come at -0.2% from the previous reading of 0.0%.
The National Consumer Price Index Ex-Fresh Food is expected to show a drop of 0.1%.
Trading will remain choppy and with volatility after the US was out of the market on Thursday and Friday will be an early closing day leaving the market with low trading volume and increase the chance for fluctuations.
Originally posted here
