The USD/JPY pair traded within the same rang that dominated the movements for the past two weeks.
The Japanese trade deficit widened during November in a sign that the higher yen is negatively affecting exports, while the yen was able to record more gains against the euro on speculations that the ECB will not take further actions to support the European economy during its meeting.
Also the expected weak European output reduced demand for the euro against the dollar and the yen, in addition to the current concerns regarding the EU debt crisis which dragged down demand on the higher-yielding currencies.
On Friday at 13:30 GMT, the U.S. economy will issue the Import Price Index for December, where it’s expected to drop to 0.1% from the prior reading of 0.7%, while the annual reading had a previous reading of 9.9%.
The U.S. Trade Balance will be up at 13:30 GMT, where it’s expected to show a deficit of $45.0 billion from the prior deficit of $43.5 billion.
At 14:55 GMT, the University of Michigan Confidence for January will be released, where it had a prior reading of 69.9 and it’s expected to up to 70.3.