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8 Feb 2013
Forex Flash: Bullishs persist for USD/JPY – BTMU
Bank of Tokyo Mitsubishi UFJ analysts are bullish on USD/JPY for the week ahead and see spot moving between a randge of 92.00-95.00.
They begin by noting that the BoJ will announce an unchanged monetary stance on 14th February, with market expectation in regard to the next governor and deputy governors and potential monetary policy changes have been growing. They write, “Until the inauguration of the governors, this market speculation will continue to undermine the yen. However, there is a risk that US economic data, like the retail sales report, may indicate weaker momentum in private consumption due to the tax burden increase, which could prompt a pause in dollar buying. The general election in Italy is another factor to trigger Eurozone uncertainties as the popularity of the right continues to grow. Political uncertainties in Spain have also caused bond spreads to start widening there again. Yen depreciation may come to a halt especially given the speed of recent dollar appreciation.”
They begin by noting that the BoJ will announce an unchanged monetary stance on 14th February, with market expectation in regard to the next governor and deputy governors and potential monetary policy changes have been growing. They write, “Until the inauguration of the governors, this market speculation will continue to undermine the yen. However, there is a risk that US economic data, like the retail sales report, may indicate weaker momentum in private consumption due to the tax burden increase, which could prompt a pause in dollar buying. The general election in Italy is another factor to trigger Eurozone uncertainties as the popularity of the right continues to grow. Political uncertainties in Spain have also caused bond spreads to start widening there again. Yen depreciation may come to a halt especially given the speed of recent dollar appreciation.”