USD/JPY: Some easing of dollar demand - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, expect the USD/JPY pair to trade with a neutral bias next week, in a range between 116.00 and 119.00. 

Key Quotes: 

“USD/JPY has risen, supported by strong demand for USD cash funding and USD/JPY buying after the Fed’s rate hike last week.” 

“Looking forward, the tightness in the USD cash market may ease as market participants are able to cover their cash funding demand close to the end of the year. The upward pressure on USD may moderate slightly. Also USD/JPY buying by speculators and JPY selling by Japanese investors may slow down.”

“Over the near-term, USD/JPY may rise further given Trump’s expansionary fiscal plans and Kuroda’s YCC monetary operations.”