Topic: COZfx: USD/JPY weekly outlook
COZforex: The yen was higher against the dollar for the third consecutive session on Friday as heightened tensions between Russia and Ukraine bolstered investor demand for safe haven assets.
USD/JPY dropped to one-week lows of 101.96 on Friday, before settling at 102.18, and ended the week down 0.48%. COZforex senior currency strategist Ian • Quigley said, USD/JPY is predicted to find support at 102.11, and a decline through could take it to the next support line of 101.80. Meanwhile, the pair is predicted to find its first resistance at 102.69, and a rise through could take it to the next resistance line of 102.96.
Concerns over the conflict between Russian and Ukraine escalated on Friday after US Secretary of State John Kerry warned that Washington was ready to step up sanctions on Russia. The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.
Demand for the yen continued to be underpinned despite data on Friday showing that Japanese inflation remained unchanged for a third successive month in April. The weak data fuelled expectations that the Bank of Japan will implement a fresh round of monetary stimulus this year, which would weigh on the yen.
The common currency remained under pressure after European Central Bank President Mario Draghi reiterated warnings on Thursday that the strong euro could trigger further monetary easing.
He also said the ECB could launch a "broad-based" asset purchase program if the medium-term inflation outlook deteriorated.
(COZ forex UK)