USD/JPY under downward pressure - BTMU

By FXstreet.com | Updated July 30, 2014 AAA

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.



Key Quotes



"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."



You May Also Like

Related Forex Analysis
  1. Forex News

    USD/JPY may test 121 in near-term – Scotiabank

  2. Forex News

    USD/JPY starts week close to 120 – MP

  3. Forex News

    USD/JPY nears 120.00

  4. Forex News

    USD/JPY climbs higher, eyes 120 levels

  5. Forex News

    Credit Suisse: Expect USD/JPY to target 119.90 levels - eFXnews

Trading Center