USD/JPY: BoJ Set the Stage for Further Yen Strength - MUFG
Analysts from The Bank of Tokyo-Mitsubishi UFJ, see that the Bank of
Japan (BoJ) provided a green light for further yen strength, but the US
dollar could gain some support ahead of the US employment report.
“The BoJ left its monetary settings intact today, even though market expectations of further monetary easing were rising until the last minutes of the meeting. After the BoJ’s statement was released, USD/JPY dropped markedly to the 108.00-level. After JPY purchases by exporters to the end of April, JPY flows from Japanese companies and investors may slow during the Golden Week holidays.”
“Although US economic data might support USD strengthening ahead of the non-farm payroll report, the topside of USD/JPY may remain below the 110.00-level, as today’s decision by the BoJ should continue to limit upside for USD/JPY. Next week, Chinese tourists might increase during Golden Week and make USD/JPY top-heavy.”