USD/JPY posts fourth weekly decline in a row

USD/JPY dropped sharply on Monday and Tuesday and then it failed to recover, spending most of the time hovering near the 100.00 area. The Japanese yen is about to post the fourth consecutive weekly gains versus the US dollar and the strongest weekly close since November 2013.

On Friday, price moved sideways around 100.20, finding support at the 100.00 handle and unable to rise above 100.45.

Without support

The minutes from the Federal Reserve July meeting and comments from central bank officials talking some possibilities about a September rate hike did not provide support to the US dollar.

On the positive side for the greenback, USD/JPY so far managed to remain above 100.00. A decline below would increase speculations about the possibility of an intervention from Japanese authorities in order to curb yen’s strength.

Next week, the main economic event in the US will be the Jackson Hole Symposiums (Thursday to Saturday) Janet Yellen will speak and if she signals a rate hike, the US dollar could receive an impulse.