Yen likely to remain volatile in the week ahead - MUFG

Research Team at MUFG notes that so far in January, exporters have been covering their real demand, pushing USD/JPY lower and Japanese investors have also been making seasonal cash repatriations, supporting the JPY.

Key Quotes

“These factors could weigh on USD/JPY topside. Fed Chair Yellen further revealed her hawkishness this week. Market expectations for more rate hikes could support the lower bound for USD/JPY. The new US president’s inauguration speech Friday may shake USD/JPY, but we do not expect any further details about his fiscal policy plans.”