fter steadily increasing during the beginning of the week, the USD/JPY once again turned bearish during trading yesterday. Analysts attributed the dollar's downward reversal to the perception among many investors that the US economic recovery has stalled following last week's disappointing Non-Farm Payrolls figure. The USD/JPY dropped as low as 78.09 in the early morning session before staging a slight upward recovery to stabilize at 78.24. The news was not all bad for the dollar though. The EUR/USD once again turned downward yesterday, dropping over 100 pips to reach as low as 1.2409.

Taking a look at the rest of the week, dollar traders will want to pay close attention to a speech from Fed Chairman Bernanke on Thursday. Any signs that the Fed is planning on a new round of quantitative easing to help grow the US economy could weigh down on the dollar. That being said, Friday's US Trade Balance is forecasted to have improved over last month's figure. If true, the dollar may be able to recoup some of its recent losses against the yen.

Source: forexyard