USDJPY Plummets Ahead of BOJ’s Policy Decision
The dollar lost ground to its Japanese counterpart on Monday after six consecutive weeks of trading higher. The pair USDJPY fell nearly 1% to as low as 116.616 due to geopolitical tensions over China’s seizure of a U.S. naval drone that magnified bearish sentiment on the greenback which resulted from profit-taking following the currency’s rally since 2008.
The Bank of Japan will hold its final meeting of the year 2016 on Tuesday. The bank is expected to leave policy unchanged as a weakening yen in the last one and a half month has helped boost Japanese exports and inflation expectations.
Meanwhile in the U.S., Federal Reserve Chairwoman Janet Yellen is due to have a speech on the job market at 1:30 p.m. EDT. Yellen’s appearance comes less than a week after the U.S. central bank decided to hike rates and indicated a faster pace of rate increases next year than had previously been expected.
Sell Stop at 117.000, Take profit at 116.000, Stop loss at 117.500