Forex Flash: USD/JPY eyes US catalysts in week ahead – UBS

FXstreet.com (Barcelona) - The USDJPY has not remained well supported with last week's disappointing Bank of Japan policy decision, which is now a distant memory. Indeed, investors are already looking ahead to the nomination of Governor Shirakawa's successor, which press reports suggest could happen around February 15th.

The week ahead could see yen watchers switch their attention to the US-centric drivers of the USDJPY for a change - the calendar is heavy with US economic releases, beginning with Durable Goods Orders later today and ending with the January nonfarm payrolls report on Friday. According to Research Analyst Gareth Berry at UBS, "Our US economics are mostly on the optimistic side of consensus, and with US yields already drifting higher, the USDJPY could soon start to draw support from this more traditional quarter. We do not expect Wednesday's FOMC decision to produce a material shift in the Fed's stance however - although with four newcomers now wielding FOMC votes, a hawkish dissent or two cannot be ruled out."