USD/JPY: Bearish bias but support seen at lower levels – MUFG

Analysts at MUFG Bank, consider the USD/JPY is moving with a bearish bias and see it trading in the 107.00/110.00 range next week. 

Key Quotes:

“USD/JPY rose in October. Japanese investors have been selling JPY more actively so far in 2H. This week, the FOMC lowered interest rates while the BoJ left monetary policy unchanged, but these moves were widely expected and had largely no effect on the markets. While the BoJ did introduce new forward guidance, it did not make any policy changes.”

“Looking ahead, economic indicators like US jobs and ISM data will be closely watched, but these are unlikely to have a big impact on the markets. Rather, Japanese investors’ overseas investment flows and related JPY selling as well as year-end USD demand are likely to support USDJPY at lower levels, limiting the downside below 108.00.”