FXStreet (Guatemala) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ noted that the USD/JPY is under downward pressure reflecting a bad mix of falling equity markets globally and declining yields in the US.
"The concerns in the euro-zone triggered by the failure of a financial institution (see below) to meet debt payments has undermined investor confidence and pushed yields lower in the US."
"The lower bound of our range for the week ahead could be met in the earlier part of the week ahead but we then we assume that while Yellen is unlikely to be hawkish, her comments in the upcoming semi-annual testimony to Congress, should be enough to put a floor under US yields. The key event for USD/JPY in Japan will be the BOJ policy meeting on 15th but like the market we do not expect any shift in stance at the meeting. If Yellen is upbeat and risk appetite improves, USD/JPY may drift higher later in the week ahead."