USD/JPY under downward pressure - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, see the USD/JPY pair likely to remain under downward pressure ahead of meeting between Japan’s Prime Minister Abe and US President Trump

Key Quotes: 

“USD/JPY has dropped to the 112 level after the BoJ and FOMC meetings. US dollar strengthening momentum has declined, while seasonal buying of JPY by Japanese investors and companies has been supporting JPY strengthening.”

“Prime Minister Abe will meet with President Trump on 10th February, and before that Japan will be preparing for the next phase, restarting free trade agreement negotiations. Commitments to infrastructure investment could support the lower bound for USD/JPY, while seasonal cash repatriations and JPY buying ahead of end-March may push USD/JPY lower.”