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12 Mar 2015
Fed policy to support higher USD/JPY – BTMU
FXStreet (Barcelona) - The Bank of Tokyo-Mitsubishi UFJ Team, maintains a bullish bias for USD/JPY for the week ahead, expecting the March FOMC meeting to trigger upside move for the pair.
Key Quotes
“The trigger of USDJPY must be March FOMC meeting. The recent slow price but solid labor market recovery may encourage Yellen to make further flexibility in the statement next week. Market anticipation for June rate hike will likely grow further and support USDJPY rise.”
“However, she may address the flexibility in the press conference and weaken that market expectation. After the upcoming meeting, USDJPY rise may be slow.”
“In addition, the confident market reaction and US treasury yield rising may hurt US stock market and JPY purchase may grow further.”
“That USD strengthening may make topside of USDJPY heavy.”
“Though no monetary policy change of the BoJ is expected, the capital outflow by Japanese corporate and investors will likely limit USDJPY lower barrier.”
“USD/JPY – Bullish Bias – (119.50-123.00)”
Key Quotes
“The trigger of USDJPY must be March FOMC meeting. The recent slow price but solid labor market recovery may encourage Yellen to make further flexibility in the statement next week. Market anticipation for June rate hike will likely grow further and support USDJPY rise.”
“However, she may address the flexibility in the press conference and weaken that market expectation. After the upcoming meeting, USDJPY rise may be slow.”
“In addition, the confident market reaction and US treasury yield rising may hurt US stock market and JPY purchase may grow further.”
“That USD strengthening may make topside of USDJPY heavy.”
“Though no monetary policy change of the BoJ is expected, the capital outflow by Japanese corporate and investors will likely limit USDJPY lower barrier.”
“USD/JPY – Bullish Bias – (119.50-123.00)”