The Japanese yen slipped versus the majority of the majors, as indicators of risk sentiment – such as the CBOE’s VIX Index – and equity markets consolidate.
There was no pertinent economic data on hand for the currency, though it’s questionable if that matters as the yen is likely waiting for the next big shift in risk appetite market-wide. Since Federal Reserve news can have a huge impact on US equity indexes, traders should look to Tuesday’s FOMC rate decision and policy statement, as this could be a major source of price action for the Japanese yen next week. My fundamental bias for the Japanese yen on Tuesday: mixed.
Written by Terri Belkas, Currency Strategist for DailyFX.com
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