The USD/JPY pair fluctuated with the beginning of the week, where the strongest US data and the deteriorating conditions in Europe fuel instability in the financial market.
The strong US NFP’s numbers provided some confidence to the broader market sentiment, while the dollar gets benefit from the recovery in the employment sector in addition to the strong performance of the manufacturing sector in the United States.
However, concerns regarding the ongoing crisis in the EU had its toll on the market sentiment, which eroded gains in the major stocks indices and increased demand for safer assets.
The Germany and France leaders are about to meet in Berlin to discuss a plan for rescuing the EU countries from the toughest sovereign debt crisis. The euro and other European currencies recorded some gains against the dollar and the yen before the meeting, but the main sentiment is still towards safe havens.
On Tuesday at 15:00 GMT, the U.S. economy will issue the Wholesale Inventories for November, where the previous reading was up by 1.6% and it’s expected to retreat to 0.4%.