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9 Aug 2013
Flash: USD/JPY looks neutral next week - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts note that USD/JPY look neutral ahead and the set to range between 95-99.
Key Quotes
“The NFP report weakened the dollar and equities globally. The yen buying was supported by risk off sentiment.”
“The US tapering expectation deteriorated global risk sentiment. Those external factors are encouraging investors to lighten short yen positioning in the near-term.”
“However the release of the Japanese GDP report for Q2 2013 may weigh upon the yen. The report is expected to reveal that the pace of economic recovery is still robust supporting expectations that Abenomics is proving successful and boosting confidence that it can withstand consumption tax reform. A reversal in US dollar selling momentum in the near-term will likely require further evidence that the US economy is regaining upward momentum in the 2H 2013.
“Next week, the release of the US retail sales and inflation reports for July will be focus.”
Key Quotes
“The NFP report weakened the dollar and equities globally. The yen buying was supported by risk off sentiment.”
“The US tapering expectation deteriorated global risk sentiment. Those external factors are encouraging investors to lighten short yen positioning in the near-term.”
“However the release of the Japanese GDP report for Q2 2013 may weigh upon the yen. The report is expected to reveal that the pace of economic recovery is still robust supporting expectations that Abenomics is proving successful and boosting confidence that it can withstand consumption tax reform. A reversal in US dollar selling momentum in the near-term will likely require further evidence that the US economy is regaining upward momentum in the 2H 2013.
“Next week, the release of the US retail sales and inflation reports for July will be focus.”