The USD/JPY pair ended last week gains for the Japanese currency, as the U.S. and EU debt crisis increased fears among traders which abandoned the high yielding currencies and shifted their investments to the Japanese yen.
The downside movement for the USD/JPY pair could be threaten by BOJ intervention bets, where the latest comments fromJapan’s officials indicate that the next move from the BOJ could be very close.
On Monday at 05:00 GMT, the Japanese economy will release the annual vehicle sales index for July, where the previous reading was down by 23.3%.
The U.S. economy will release the construction spending for June at 14:00 GMT, where it’s expected to show a drop of 0.1% from the prior fall of 0.6%.
The ISM manufacturing for July will be released at 14:00 GMT, where it is expected slightly higher to 55.4 from 55.3.