29 Nov 2013
Flash: USD/JPY upside bias given strong Yen selling - BTMU
FXstreet.com (Barcelona) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ note that the upcoming US employment report may prompt dollar buying versus the yen to the 103-level if the recent average gain in employment remains close to 200k.
Key Quotes
“The current consensus according to Bloomberg is for a gain of 183k – which would be good enough to maintain optimism of a gradual improvement in labour market conditions.”
“Momentum this week has been clearly in favour of yen selling versus the dollar even with EUR/USD drifting higher.”
“Hence, any correction lower, say due to a weaker employment report in the US, is unlikely to be deep or sustained and we would expect the 100.00 level to hold even if payrolls were weak.”
Key Quotes
“The current consensus according to Bloomberg is for a gain of 183k – which would be good enough to maintain optimism of a gradual improvement in labour market conditions.”
“Momentum this week has been clearly in favour of yen selling versus the dollar even with EUR/USD drifting higher.”
“Hence, any correction lower, say due to a weaker employment report in the US, is unlikely to be deep or sustained and we would expect the 100.00 level to hold even if payrolls were weak.”