FXStreet (Barcelona) - The Team at Bank of Tokyo-Mitsubishi UFJ, maintains a bearish bias on USD/JPY for week ahead, anticipating the pair to maintain a 118.50-120.50 range.
Key Quotes
“US retail sales recovered in March after the recent three months declines. Yet, the US treasury market and dollar selling flagged bearish momentum.”
“There might be lingering concerns of the US economic recovery. The key concern may shift to the US major companies’ financial results. Further US dollar strengthen may require the US corporate sector to show recovery with labor market resiliency.”
“Before the next non-farm payroll data release, there is a risk that US dollar weakening is extended. Japan’s March trade data will likely reveal a further deficit narrowing, thanks to export rising and energy import dropping.”
“After the start of FY15, Japanese investors might be still net foreign asset sellers. That suggests Japanese investor’s room for further active portfolio rebalancing. Japanese investor’s JPY selling may limit the downside of USDJPY.”
“Moreover, lingering market expectation for further monetary easing by the BoJ on 30th April may limit the US dollar downward path to around 118.50.”