The US dollar continued to gain against the Japanese Yen during last weeks trading session as growing expectations that the Federal Reserve will begin to raise rates sooner than previously thought boosted demand for the greenback.
The dollar has rallied in the past two months as economic data indicated that the U.S. recovery is progressing strongly, while growth in Japan appears to be faltering.
On Wednesday the Federal Reserve offered fresh guidance on its plans to raise interest rates, underlining the diverging policy stance between it and the Bank of Japan, which looks likely to stick to a looser policy stance.
Weekly bias remains strongly bullish with 21 and 55 EMA still crossing northward. Also SSRC, OSMA and RSI oscillators are still showing buying momentum, established for the past 2 months. More rise to 110.640 resistance in the medium term picture is expected and a break of it would bring further rise to 114.700 resistance. However, i suggest buying the dips each time this pair makes decent retracements.
This week, investors would be monitoring US New Home Sales, Core Durable Good Orders and Unemployment Claims.