For four trading sessions in a row, the price of the USD/JPY currency pair is settling in a narrow range between the support level of 131.73 and the resistance level of 133.90. It settled around the level of 133.11 at the time of writing the analysis. The currency pair may remain moving in a narrow range until the release of the minutes of the last meeting of the US Federal Reserve this week. The importance of the minutes is due to the fact that the markets and investors derive from it the date and amount of raising US interest rates in the coming months.
Dollar-Yen Economic Outlook
A measure of manufacturing health in the United States recorded its second largest decline ever, in a sign of the continued slowdown in American activity. However, the scale of the collapse has led some economists to question the outcome. The New York Empire State Headline Index for August read -31.30. The market was looking for a slowdown from 11.10 to 5.50 June.