USD/JPY: Neutral bias, likely limited by 104.00 - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, have a neutral bias for the USD/JPY pair for the next week and expect it to trade between 101.00-104.00.

Key Quotes:

“Ahead of the monetary policy meetings of the BoJ and the Fed on 20th -21st September, the topside of USD/JPY has been heavy. The JPY yield curve has been steepening, short-term JPY yields have been dropping and long-term yields have been picking up. However USD/JPY has not risen yet.”

“The global monetary environment is so accommodative that the major central banks’ policy divergence and yield differences may not support JPY depreciation. Japanese investors might remain calm so close to the end of the fiscal half year. JPY selling pressure may not grow any stronger at this stage. JPY purchasing by exporters could limit the rise of USD/JPY to about 104.”