USD/JPY supported by hawkish FOMC minutes - MUFG

Analysts from The Bank of Tokyo-Mitsubishi UFJ, explained that the hawkish Federal Reserve stand regarding interest provides more support to the USD/JPY that is expected to retain a neutral bias next week, trading around 109.00 and 112.00.

Key Quotes:

“The recent rise of USD/JPY is supported by speculators lightening JPY long positions. The next key resistance level comes in at around the 110.50-level where the 55-day moving average is located. Next week ahead of the G7 Summit in Ise-Shima, USD/JPY may stay calm remaining in its recent range.”

“The FOMC minutes suggest that the stance of members is hawkish. That may support the rise of USD/JPY further. However exporters’ yen buying may solidify the top side of USD/JPY around 112 near the end of the month.”

“Now that major Japanese financial institutions have just released their financial statements, their capital outflows might still be muted and they may wait to see policymakers’ initiatives and efforts ahead of the upcoming Upper House election.”