USD/JPY: set to stay in a narrow range? - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that USD/JPY rose from end-August through early September as exporter JPY purchases declined and JPY was sold for large-scale M&As. USD/JPY then fell to the 101-level in line with our scenario.

Key Quotes:

"Last Friday’s US non-farm payrolls report may not be strong enough for the Fed to take action this month. Japan’s GDP continues to grow, but does not point to any policy direction. This month’s Fed and BoJ meetings may not result in any major decisions or change in policy direction.

A media report today detailed the difficulty faced by BoJ members in reaching consensus regarding the comprehensive assessment of QQE with a negative interest rate. Market participants may have to wait for Sept 20-21, when both the Fed and BoJ meet. USD/JPY may remain in a narrow range next week."