Forex Flash: USD/JPY looks neutral ahead – BTMU
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USD/JPY
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts believe that USDJPY looks neutral ahead and will range between 89.00-82.00.
They see that after markets digested the 2013 Abenomic budget, USDJPY moved mostly in line with the recent trend. Next week, they feel that a relatively weaker ISM manufacturing reading will lift the pair. The team add that in Japan, the Lower House will begin receiving nominations of the next BoJ Governor slated to succeed Shirakawa in April.
They write, "Markets are expecting a more accommodative stance in monetary policy when the new governor takes office. Against the global recovery momentum, yen selling will also be supported by investments done overseas in financial instruments and real business opportunities until the end of the fiscal year. Based on this view, the probability of further USDJPY upside will continue to increase."
They see that after markets digested the 2013 Abenomic budget, USDJPY moved mostly in line with the recent trend. Next week, they feel that a relatively weaker ISM manufacturing reading will lift the pair. The team add that in Japan, the Lower House will begin receiving nominations of the next BoJ Governor slated to succeed Shirakawa in April.
They write, "Markets are expecting a more accommodative stance in monetary policy when the new governor takes office. Against the global recovery momentum, yen selling will also be supported by investments done overseas in financial instruments and real business opportunities until the end of the fiscal year. Based on this view, the probability of further USDJPY upside will continue to increase."
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