The USD/JPY pair is trading within a consolidation area since the beginning of the week, where the U.S. dollar is gaining against majors and the Japanese yen is trying to maintain its gains against the dollar.
It seems like the Japanese currency has lost its appeal as a refuge, as traders are wary of the rapid appreciation for the yen against the dollar and other major currencies, on fears that BOJ could intervene once again in the FOREX market and sell its currency.
The Japanese economy has no fundamentals to release on Friday, so the Japanese yen movements will be based on the U.S. data and the market sentiment.
At 12:30 GMT the U.S. economy will release the consumer price index for April, where the previous reading was 0.5% and is anticipated to retreat to 0.4%, while the annual reading is expected to rise to 3.1% from 2.7%.
The American economy will end the week with the preliminary May survey for the University of Michigan confidence at 13:55 GMT, as it is expected to come at 70 better than the previous reading of 69.8.
Written by ForexMansion.com