JPY: Investor appetite for selling is likely to be limited – Danske Bank

USD/JPY gained on Friday on renewed hopes that the US congress could pass a tax bill within few days and besides possible support to the cross from a US tax reform, the tight USD liquidity situation is also likely to continue to underpin the cross near term, according to analysts at Danske Bank.

Key Quotes

“Investor appetite for selling JPY is likely to be limited ahead of the BoJ meeting, which ends on Thursday. Here, focus will be on the communication from Governor Haruhiko Kuroda during the press conference, as he might elaborate on recent tightening speculation.”