USD/JPY has best week since July

The US dollar is about to end the week higher across the board. USD/JPY is gaining so far almost 400 pips from the level it had seven days ago. Near the end of Friday, it was hovering around 110.70, close to daily highs, holding a strong bullish tone. 

US economic data, rising US bond yields and expectations that the Federal Reserve is likely to raise rates in December, gave support to the USD rally in the market. USD/JPY broke at the beginning of the week the 107.00 area and extended the rally that started days before the presidential elections in the US. 

So far in November, USD/JPY is having the best monthly performance sine 2014. Still, for the year, the yen is among the top performers. The pair opened the year around 120.00 and then bottomed slightly below 100.00. It bounced to the upside in October. 

FOMC minutes 

Next week, attention will likely continue on potential announcements from the president-elect Donald Trump. Regarding economic events, on Wednesday the Federal Reserve will release the minutes of its latest meeting. Although according to the CME Group Fed Watch Tool, market odds of a rate hike are above 95%, the Fed document could be interesting. In Japan, inflation data will be released. In the US will be a shortened week, because of Thanksgiving.