USD/JPY strength could be impaired on Nonfarm Payrolls – BTMU

By FXStreet FXStreet (Guatemala) – Lee Hardman, analyst at the Bank of Tokyo Mitsubishi UFJ, explained that in the last week of August, global investors sold JPY630 billion of Japanese stocks.

Key Quotes:

“The selloff of stocks may have triggered JPY buying, but Japanese investors purchased foreign assets more aggressively than global investors, which helped counter this yen demand and helped lift USD/JPY from 116 to 120. The US non-farm payroll report may strengthen market expectations for a Fed rate hike.”

“But this could roil global equity markets, and JPY buying pressures may build again. The lower bound of USD/JPY may be near 119 next week ahead of the FOMC’s September meeting. We do not expect Japan’s 2Q GDP data to be revised up next week due to weak capex data in the corporate survey. But the survey did report that Q2 corporate profits rose a remarkable 23.8% YoY.”
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Source:: FX Street