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31 Mar 2016
USD/JPY: Yen strength still proving resilient - BTMU
Analysts from The Bank of Tokyo-Mitsubishi UFJ, see the USD/JPY neutral ahead of the next week, with price moving between 110.50 and 114.50.
Key Quotes:
“Many Japanese investors will likely sell foreign assets at the beginning of FY16 to realize gains. But such active cross border flows may not support USD/JPY, as many such investors have not determined their investing strategies for FY16 yet. They may take just enough gains the first week of April before making their next steps. After that, USD/JPY will likely stay calm.”
“Forthcoming US economic data, particularly nonfarm payrolls and ISM manufacturing on April 1 may support another Fed rate hike and a USD rally. However, the data could also hurt US stock prices, so USD selling may limit USD/JPY topside at around 114.”
“USD/JPY may decline because of lingering JPY repatriation by Japanese exporters and investors. Real flows may still support a JPY rally.”
Trade the nonfarm payrolls report - Live Coverage & Analysis
Key Quotes:
“Many Japanese investors will likely sell foreign assets at the beginning of FY16 to realize gains. But such active cross border flows may not support USD/JPY, as many such investors have not determined their investing strategies for FY16 yet. They may take just enough gains the first week of April before making their next steps. After that, USD/JPY will likely stay calm.”
“Forthcoming US economic data, particularly nonfarm payrolls and ISM manufacturing on April 1 may support another Fed rate hike and a USD rally. However, the data could also hurt US stock prices, so USD selling may limit USD/JPY topside at around 114.”
“USD/JPY may decline because of lingering JPY repatriation by Japanese exporters and investors. Real flows may still support a JPY rally.”
Trade the nonfarm payrolls report - Live Coverage & Analysis