The U.S dollar fell against the Japanese Yen in last week’s trading session after the greenback came under pressure after the Federal Reserve lowered both its U.S. growth forecast and its interest-rate projections on Wednesday, prompting investors to push back expectations on the timing of an initial rate hike.
Fed Chair Janet Yellen said the central bank wanted to see “more decisive evidence” of sustained growth before raising rates, but acknowledged that the economy has “expanded moderately” after a weak first quarter.
The consolidation pattern from 125.85 continued last week after topping out forming a resistance there and outlook is unchanged. Initial bias stays neutral this week first. Break of 125.85 is needed to confirm up trend resumption or we’d expect more sideway trading. Meanwhile, below 122.45 will target 61.8% retracement of 118.88 to 125.85 at 121.54. Our estimated pivot level for this week would be at 124.45 and we’ll sell the rips if we get any corrective pattern on this pivot level.
In the week ahead, euro zone ministers are to hold talks in Brussels on Monday to discuss the crisis in Greece.
The euro zone is to release data on private sector growth on Tuesday, while the week will also bring what will be closely watched reports on the U.S. factory and housing sectors, Core durable goods and Final GDP.