The USD/JPY pair dropped last week to 81.61 levels with the return of strong risk appetite to the market and increased demand for higher-yielding assets. Japan and U.S. are not expected to shift to monetary tightening, so the yen and greenback will lose more momentum against other currencies.
The Japanese currency weakened with the beginning of this week, as the Bank of Japan is expected to maintain its stimulus package this week, while other central banks started to shift to tighter monetary policies.
The BOJ is expected to hold interest rate near zero this week, while retail sales data is forecasted to sink during March after the strongest quake to hit Japan on March 11.
On Tuesday, the United States will release consumer confidence indicator for April at 14:00 GMT, and the reading is expected to show improvement to 64.5 compared with the previous 63.4.
The Japanese economy will be back to work on Tuesday at 23:50 GMT to release the seasonally adjusted retail trade for March, which had a previous reading of 0.8%, while the annual reading had a previous reading of 0.1% on February.
Originally posted here
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