USD/JPY Forecast Dec. 19, 2011, Fundamental Analysis

, where the US dollar and the yen continued their upside movements against other major currencies on the back of risk aversion which dominated the FX market.

The next move for the USD/JPY pair will depend on the market sentiment, where the BOJ’s decision and the U.S. GDP numbers will contribute in defining the sentiment.

On the other hand, the pair will likely remain under pressure of a possible intervention from the BOJ in FX market, which could change the short term trend for the USD/JPY pair.

On Monday both economies are not due to release any major fundamentals leaving the focus on the market sentiment.