USD/JPY Forecast Jan. 23, 2012, Fundamental Analysis

USD/JPY Forecast Jan. 23, 2012, Fundamental Analysis
USD/JPY Forecast Jan. 23, 2012, Fundamental Analysis
The USD/JPY pair ended last week with gains, where the pair was able correct to the upside with the improved sentiment in the market that eased haven demand, easing pressure on the Bank of Japan which will announce its rate decision this week.

The current sentiment is supporting the risk appetite where the latest macroeconomic data and eased fears over Europe’s outlook supported the unwinding of pessimism and reduced demand for safe haven currencies.

The USD/JPY pair is expected to continue the upside short-term trend, while any intervention from the BOJ will have its toll on the pair’s movements and could easily confirm the upside move over the mid-term.

On Monday, both economies will not release any fundamentals, where the pair’s movements will depend on the market sentiment.

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