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5 Dec 2014
USD/JPY heading back towards pre-financial crisis high – BTMU
FXStreet (Barcelona) - Research Analysts at Bank of Tokyo-Mitsubishi UFJ, notes higher US yields expectations fuelling the upward momentum in USD/JPY.
Key Quotes
“The market expectation for higher US yields is growing supporting upward momentum in USD/JPY. The ECB’s monetary accommodative policy stance may support US dollar buying as well. Heading into the next FOMC meeting, US dollar buying momentum may remain. In addition, a favourable election outcome in Japan may support a higher USD/JPY. In the near term, USD/JPY may move above the 120-level. The MoF officials may check fast USD/JPY rise. Higher US yields may weaken emerging market economies. That may help dampen further upside for USD/JPY.”
Key Quotes
“The market expectation for higher US yields is growing supporting upward momentum in USD/JPY. The ECB’s monetary accommodative policy stance may support US dollar buying as well. Heading into the next FOMC meeting, US dollar buying momentum may remain. In addition, a favourable election outcome in Japan may support a higher USD/JPY. In the near term, USD/JPY may move above the 120-level. The MoF officials may check fast USD/JPY rise. Higher US yields may weaken emerging market economies. That may help dampen further upside for USD/JPY.”