What’s next? – USDJPY 19.06.17

The USDJPY was 0.08 percent higher as of 12:20 GMT at 110.95, with market players looking ahead of FOMC speakers to size their expectations for a new rate move later this year.

The first on the list this week is New York Fed President William Dudley, who is speaking by the time at this writing. His comments are relevant to investors as the hawkish stance of the FOMC took by surprise investors due to the constantly disappointing economic data.

The dollar/yen began higher on Monday, as most traders expected Fed officials to support the regulator on its plan to move forward with the monetary normalization process and unwinding its massive $4.5 trillion balance sheet.

The yen, a currency usually described as a safe-haven asset, has a negative correlation with interest rate hikes in the United States, which doesn’t surprise as such moves benefit the dollar.

On the data front, Japan’s trade balance came in as a big blow for investors, moving to minus 203 billion against a 76 billion surplus initially estimated. Exports rose 14.9 percent last month, falling short from expectation of a 16.1 percent increase.

Export volumes rose by 7.5 percent percent in May year-over-year, marking the fastest rise in the last three months. Imports gained by 17.8 percent, the best number since 2014.

As no relevant economic data is due for the day, the pair will likely be directed by fluctuations on US treasuries yields and their effect on the greenback.