USD/JPY: BoJ Set the Stage for Further Yen Strength - MUFG
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.
Key Quotes:
“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.”
