USD/JPY likely to remain around current levels next week - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, see USD/JPY with a neutral perspective over the next week, moving in a range between 107.50 and 110.50. 

Key Quotes: 

“Underlying accommodative monetary conditions have slowed the recent yield curve steepening around the world. The incoming US administration has not yet shown further direction for fiscal policy management, though market expectations for fiscal expansion under a Trump administration may pick up further, supporting a US Treasury yield rise.”

“The BoJ today bought JGBs at a fixed rate, the first such operations since the BoJ announced plans to control the yield curve on September 21. The global yield rise has supported a rise in short-term JGB yields which is chiefly due to the present JGB market structure given the high share held by overseas investors. The BoJ has minimized the contagion effect from the US. USD/JPY may remain near its current level next week.”