12 Jun 2015
USD/JPY: neutral bias for the next week – BTMU
FXStreet (Barcelona) - The Team at Bank of Tokyo-Mitsubishi UFJ, maintains a neutral bias on USD/JPY for the next week, expecting the pair to stay around 123 levels until the key June FOMC Meeting.
Key Quotes
“After Kuroda’s comment on JPY REER which has been fading USDJPY bullish momentum, the upper ceiling of USDJPY may be below 125-level, Next week, USDJPY may stay around 123 until the FOMC meeting. The Fed may display a more cautious tone over tightening monetary policy signaling a more gradual pace of rate hikes.”
“The negative impact on the US dollar may prove modest as it has already weakened in advance of the FOMC’s upcoming meeting. The lower bound may be supported by JPY selling near 121.50 USDJPY.”
“The recent rise in global yields might reduce the risk capacity. Japanese investors will have JGB redemption cash which may support JGB buying, not foreign assets buying toward the end of June.”
“USD/JPY – Neutral Bias – (121.50-124.50)”
Key Quotes
“After Kuroda’s comment on JPY REER which has been fading USDJPY bullish momentum, the upper ceiling of USDJPY may be below 125-level, Next week, USDJPY may stay around 123 until the FOMC meeting. The Fed may display a more cautious tone over tightening monetary policy signaling a more gradual pace of rate hikes.”
“The negative impact on the US dollar may prove modest as it has already weakened in advance of the FOMC’s upcoming meeting. The lower bound may be supported by JPY selling near 121.50 USDJPY.”
“The recent rise in global yields might reduce the risk capacity. Japanese investors will have JGB redemption cash which may support JGB buying, not foreign assets buying toward the end of June.”
“USD/JPY – Neutral Bias – (121.50-124.50)”