28 Jun 2013
Flash: USD/JPY looks bearish ahead - BTMU
FXstreet.com (London) - Bank of Tokyo Mitsubishi UFJ analysts believe that USD/JPY looks bearish ahead and set to range between 97.00-101.00.
They begin by noting that after the FOMC, the expectation for tapering of QE was enlarged, globally the equity markets were signing for risk-off. Further, they add that yen buying was supported on the risk-off mode. However, the Tokyo Metropolitan assembly election results suggest that the LDP will win in the upcoming upper house election on July 21. They write, “The yen negative Abenomics expectations may continue to support USD/JPY and Nikkei buying. USD/JPY has rebounded from the bottom at 93.75 on June 13.” Further, the Nikkei recovery may support the USD/JPY buying, and in July, the Chinese money market may continue to calm down allowing USD/JPY to move back above the 100-level. They comment, “USD/JPY may struggle to gain further upward momentum ahead of the NFP payrolls report and Independence Day holiday in the US.”
They begin by noting that after the FOMC, the expectation for tapering of QE was enlarged, globally the equity markets were signing for risk-off. Further, they add that yen buying was supported on the risk-off mode. However, the Tokyo Metropolitan assembly election results suggest that the LDP will win in the upcoming upper house election on July 21. They write, “The yen negative Abenomics expectations may continue to support USD/JPY and Nikkei buying. USD/JPY has rebounded from the bottom at 93.75 on June 13.” Further, the Nikkei recovery may support the USD/JPY buying, and in July, the Chinese money market may continue to calm down allowing USD/JPY to move back above the 100-level. They comment, “USD/JPY may struggle to gain further upward momentum ahead of the NFP payrolls report and Independence Day holiday in the US.”