Dollar Lower against Yen Beginning of Golden Week

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Dollar Lower against Yen Beginning of Golden Week

Dollar is stuck near two-month low versus the Yen as slow U.S. growth keeps dollar under pressure and the beginning of Japanese National holiday, Golden Week, brings lower momentum in Yen.

We are waiting for the announcement of U.S. personal spending and personal income at 8:30 am in New York on Monday, speculating further dollar movements. According to Bloomberg, consumer spending in the U.S. probably climbed in March as incomes grew, indicating the biggest part of the economy is helping sustain the expansion. The dollar may edge even lower if data, including U.S. jobs disappoints U.S. growth this week.

On a daily basis, USD/JPY is slowly moving down getting closer to the lower band of the Ichimoku cloud at 80.15. A daily close below the Ichimoku cloud may open the door for further declines in the pair, taking it back to the previous resistance of October 30, 2011 to make it a support at 79.52. Any rallies should be well capped below 81.72.

By Kiana Danial at Forex Diva