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3 Apr 2014
USD/JPY risk on as investors favour US - BTMU
FXStreet (Guatemala) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ explained that the USD/JPY has reached the 104.00-level driven by yen selling due to risk-on sentiment reflecting improving investor optimism over the outlook for the US economy.
Key Quotes
The USD/JPY has reached the 104.00-level driven by yen selling due to risk-on sentiment reflecting improving investor optimism over the outlook for the US economy. Although potential negative developments in the Ukraine and China still pose some upside risk for the yen, it appears increasing likely that USDJPY may rise back towards the 105.00-level for the fist time since January."
"The release of a strong non-farm payrolls report on Friday should support renewed upward momentum for USD/JPY. However, USD/JPY upside in the week ahead maybe dampened above the 105.00-level by profit taking. Yen selling may also be supported by the release of Japan’s current account report for February highlighting weakening fundamentals."
Key Quotes
The USD/JPY has reached the 104.00-level driven by yen selling due to risk-on sentiment reflecting improving investor optimism over the outlook for the US economy. Although potential negative developments in the Ukraine and China still pose some upside risk for the yen, it appears increasing likely that USDJPY may rise back towards the 105.00-level for the fist time since January."
"The release of a strong non-farm payrolls report on Friday should support renewed upward momentum for USD/JPY. However, USD/JPY upside in the week ahead maybe dampened above the 105.00-level by profit taking. Yen selling may also be supported by the release of Japan’s current account report for February highlighting weakening fundamentals."