USD/JPY appears well supported near 118.00 – BTMU

By FXStreet FXStreet (Edinburgh) – Analysts at BTMU expect pullbacks in spot to remain well contained in the 118.00 area.

Key Quotes

“The September FOMC decision is important for USD/JPY direction in the near-term. The Fed holding pat and the possibility of an October rate hike may lift USD/JPY towards the 122.00-level if global equity markets continue to rebound as well”.

“The BoJ left policy intact this week and stressed emerging market risks in its policy statement. However, Governor Kuroda’s views appeared unchanged. Kuroda will wait for the upcoming September Tankan, particularly price-related indices”.

“Domestic data has stayed in line with Kuroda’s main scenario, so market expectations for further monetary easing and yen selling pressures may diminish”.

“Exporters may buy USD/JPY before and after Japan’s holidays next week. JPY selling for large-scale FDI may support the USD/JPY lower bound at around 118”.
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Source:: FX Street