The following are USD/JPY range and and outlook for next week as provided by Bank of Tokyo-Mitsubishi UFJ, Ltd (BTMU).
USD/JPY - neutral bias – (101.30-103.30)
The more dovish than expected FOMC minutes have weighed modestly upon the US dollar. Fed Chair Yellen has also reiterated that the Fed will maintain loose monetary policy for the foreseeable future. The yield gap between the US and Japan has narrowed recently undermining upward momentum for USD/JPY in the near-term. We expect that USD/JPY will continue to find support at the 101.00-level. Heightened geopolitical risks related to the Ukraine still pose downside risks for the USD/JPY especially if military tensions escalate.
Next week, the release of the Japanese trade and CPI reports for March are unlikely to trigger renewed yen selling. The Tokyo CPI report for April may test BoJ Governor Haruhiko Kuroda great confidence in the recovery momentum even after sales tax hike. The influence of sales tax hike in April was estimated at 1.7% YoY by the BoJ 17 hours ago - View -
Uncle Filthy's Jambalaya : Have something that you want us to discuss on the next UFJ podcast? Want to abuse us? Message us below, or message us privately, or send us a message by carrier pigeon. Preferably the last one. Light reading AND a sexual partner. Score! 1 day ago - View -