MUFG on USD/JPY
MUFG Research discusses USD/JPY outlook and turns tactically bullish, expecting the cross to trade with an upside bias in 107-110 range in the near-term.
“USD/JPY has risen on positive market sentiment stoked by a partial
US-China trade agreement and an uptick in JPY selling resulting from
early 2H investment flows. USD/JPY could rise even further from next
week, which features not only the IMF annual meetings but also US and
Chinese officials releasing more details on the partial US-China trade
deal reached. Also, the Fed’s decision to buy more Treasuries has been a
positive for market sentiment.
“The current mood is likely to continue for some time. The
Fed, as well as the BoJ, will meet in two weeks, and enter their
blackout periods from next week,” MUFG adds.