USD/JPY Supported by Hawkish FOMC Minutes - MUFG
Analysts from The Bank of Tokyo-Mitsubishi UFJ, explained that the
hawkish Federal Reserve stand regarding interest provides more support
to the USD/JPY that is expected to retain a neutral bias next week, trading around 109.00 and 112.00.
Key Quotes:
“The recent rise of USD/JPY is supported by speculators lightening JPY
long positions. The next key resistance level comes in at around the
110.50-level where the 55-day moving average is located. Next week ahead
of the G7 Summit in Ise-Shima, USD/JPY may stay calm remaining in its
recent range.”
“The FOMC minutes suggest that the stance of members is hawkish. That
may support the rise of USD/JPY further. However exporters’ yen buying
may solidify the top side of USD/JPY around 112 near the end of the
month.”
“Now that major Japanese financial institutions have just released their
financial statements, their capital outflows might still be muted and
they may wait to see policymakers’ initiatives and efforts ahead of the
upcoming Upper House election.”
