USD/JPY boosted by speculation over BoJ and Fed policy divergence - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, see the USD/JPY with a neutral bias and moving between 102.00 and 104.50.

Key Quotes:

“Since the end of August on a transaction day basis, USD/JPY has picked up because of Yellen’s hawkish speech last weekend and reduced purchasing of JPY by exporters. Even after the policy divergence between the US and Japan was clarified, the topside for USD/JPY was 103. If the upcoming non-farm payroll report shows improvement, the topside of USD/JPY may be below 105.”

“The US stock markets have been rising. The US dollar’s upturn may weaken stock market sentiment and support a USD/JPY reversal. Japanese investors are waiting for the BoJ’s comprehensive assessment in September. They might not actively boost investment ahead of the September BoJ Monetary Policy Meeting.”