The JPY once again lost its luster against the other majors in last Friday�s trading as investors became optimistic on the capitals market. The US markets, together with the other higher yielding currencies, were lifted with the unexpected jump in US existing homes sales.
No economic events were held in Japan last Friday. The main catalyst for the JPY, however, was the US existing home sales. The account surprisingly rose to 5.24 million from 4.89 million. It was only seen to reach 5.03 million. The unexpected jump in the figure sparked a broad base buying of higher yielding assets. The JPY got left out in the process.
Tomorrow (August 25), Japan�s trade balance will be released. The number is projected to narrow to �0.29 trillion from �0.44 trillion.
It is not looking good for the JPY this week given the projections above.