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2 Aug 2013
Flash: USD/JPY neutral ahead of NFP´s - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts believe that USD/JPY looks neutral ahead and is set to range between 97.50 and 100.50.
Key Quotes
“Although the FOMC statement was a little dovish, the expectation of tapering in the market has not been changed much.”
“The 10-year US Treasury yield is still hovering around 2.6%. This will support USD/JPY. Below-98.00 levels in the pair seem to be harder to forge.”
“USD/JPY's downside will be limited unless US economic indicators including NFP is much worse than expected. USD/JPY looks poised to rebound towards the 100 level at a measured pace.”
“We expect the main driver of USD/JPY to be JPY depreciation triggered by the lowering of the JPY's real yield as mild inflation creeps in. As there will be no fresh news from Japan next week, USD/JPY should be capped at around 100.”
Key Quotes
“Although the FOMC statement was a little dovish, the expectation of tapering in the market has not been changed much.”
“The 10-year US Treasury yield is still hovering around 2.6%. This will support USD/JPY. Below-98.00 levels in the pair seem to be harder to forge.”
“USD/JPY's downside will be limited unless US economic indicators including NFP is much worse than expected. USD/JPY looks poised to rebound towards the 100 level at a measured pace.”
“We expect the main driver of USD/JPY to be JPY depreciation triggered by the lowering of the JPY's real yield as mild inflation creeps in. As there will be no fresh news from Japan next week, USD/JPY should be capped at around 100.”