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18 Apr 2013
Forex Flash: USD/JPY looks bullish ahead - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts have taken a look at USD/JPY for the week ahead and have a bullish bias and see spot moving between a range of 97.00 and 101.00.
They begin by noting that the release of the weaker than expected US retail sales numbers for March, apparent terrorist attacks in Boston and the report to Congress on International Economic and Exchange Rate Policies prompted a yen short squeeze. They add that the pair briefly fell back below the 96.00 level attracting strong demand to buy on dips which has resulted in Yen strength quickly reversing. They add that the price action support s their view that the Yen will continue to trend weaker, driven by the aggressive monetary easing programme adopted by the new BoJ leadership. They write, “As long as Governor Kuroda can successfully explain that yen weakness is just the result of BoJ monetary easing aimed to stimulate domestic demand, then G20 countries are likely to welcome Japanese policies as they should help boost global growth. After confirming the G20 is not against Japanese policies, we expect USDJPY to attempt again to break above the 100-level.”
They begin by noting that the release of the weaker than expected US retail sales numbers for March, apparent terrorist attacks in Boston and the report to Congress on International Economic and Exchange Rate Policies prompted a yen short squeeze. They add that the pair briefly fell back below the 96.00 level attracting strong demand to buy on dips which has resulted in Yen strength quickly reversing. They add that the price action support s their view that the Yen will continue to trend weaker, driven by the aggressive monetary easing programme adopted by the new BoJ leadership. They write, “As long as Governor Kuroda can successfully explain that yen weakness is just the result of BoJ monetary easing aimed to stimulate domestic demand, then G20 countries are likely to welcome Japanese policies as they should help boost global growth. After confirming the G20 is not against Japanese policies, we expect USDJPY to attempt again to break above the 100-level.”