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USD/JPY about to end week modestly lower after recovering sharply

FXStreet (Córdoba) - USD/JPY extended gains on Friday amid a stronger US dollar following comments from Federal Reserve officials about the outlook of the monetary policy and the economy. The pair reached a fresh high at 121.53.

Currently is hovering around 121.30, about to end the week just 65 pips below the levels it had a week ago; considerably away from Monday’s lows located near 116.00. Price action moves during the last five days created a “hummer” pattern in candlestick charting, which could signal a continuation of the rally of the US dollar.

JPY, the best of the week

The yen was among the top performer during the week boosted by risk aversion; all yen gains occurred on Monday. Next week, volatility could remain high across financial markets. Regarding economic data, the most important event for USD/JPY will be Friday’s non-farm payroll report.

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