USD/JPY: Yen regains poise after sell off earlier this month – MUFG

Analysts at MUFG Bank, see the USD/JPY pair with a bearish tone for next week and expect it to trade in the 106.00/109.00 range. 

Key Quotes:

“USD/JPY has been stuck in a narrow range, and next week is also unlikely to feature any significant triggers. A number of key US indicators are slated for release, but for now policy stance is being watched more closely than indicators.”

“In Japan, the September Tankan release on October 1 will be watched, especially for any signs that could lead to further easing. We will be watching not only the September Tankan, but also the BoJ branch managers’ meeting and comments by both Governor Kuroda as well as other Monetary Policy Board members after that.”

“The improving US data flow is creating a more US dollar supportive environment in the near-term. The combination of recent stronger than expected US activity and inflation data casts doubt on whether the Fed will deliver one more rate cut this year.”