JPY Weekly Forecast – April 15 to 19
An improvement in the risk sentiment pulled the Yen lower during the last week. The question that prevails among traders is if the bulls will continue their run for the next two days?
The Low-Impact Economic Reports
It’s been quite some time since the traders of Yen took directional clues from Japan’s economic data. However, the reports which are likely to be released this week might show some volatality for the safe haven currency.
The trade balance data is expected to show a shortfall of 296.9B JPY, a move from the 116.1B JPY surplus which was seen in January.
Japan’s industrial production which showed a 1.4% hike in the month of February is likely to keep its reading in the revised release. The National annualized CPI is expected to show a 0.5% hike after the 0.2% increase in February.
The Market Risk Sentiment
There is no much data seen from Japan’s side. Hence, traders are likely to take clues from the global risk sentiment once again.
China’s data dump might give some clue on how strong the economy is and how much it could demand from the commodity-producing economies in the future.
A lot of manufacturing and service PMIs can be expected from the European region. If the releases are stronger than expected then it would contradict ECB’s non-agressive stand. This might also result in extending the common currency’s last-minute rally. If the releases are weak then there are chances for a few Euro bulls to sell. The reports such as the retail sales and manufacturing and services PMI from Uncle Sam are also to be released.