The yen is about to end its 4th consecutive week of gains against the U.S. dollar. It is currently trading at 88.30, after the U.S. economic news came in far worse then expected. The USD/JPY is reaching a resistance level where sell pressure is expected to decline as more buyers enter the market at the current rate price.
Both the Japanese yen and U.S. dollar are considered safe haven currencies, but investors as of late seem slightly more in favor of the yen over the USD. Looking ahead to today, investors should pay attention to the numerous U.S. economic indicators set to be released. If they disappoint, the yen should continue to strengthen against the U.S. dollar, possibly taking the pair below $88.