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21 Feb 2013
Forex Flash: USD/JPY looks bullish ahead - BTMU
Bank of Tokyo Mitsubihi UFJ analysts believe that USD/JPY looks bullish ahead and will move between a range between 92.00-95.00.
They note that Vice Minister for International Affairs Joe Nakano will attend the US-Japan summit and support Prime Minister Shinzo Abe and if there is no specific comment on the currency issue at the summit, the upside probability of USD/JPY will increase.
Looking towards the pending BoJ nomination, the candidates names will be announced by the Ministry of Finance next week. They note that the market expectation for the yen depreciation may be growing, though yen selling will depend on the name of the BOJ candidates when announced. They write, “The lower bound for USD/JPY is around 92.00-level for the coming nomination process. If the non-ruling parties, mainly the DPJ in the upper house and Your party, complicate the nomination process again like the DPJ did in 2008, fears of a delay in implementing 'Abenomics' may lower USD/JPY to the lower bound.”
They note that Vice Minister for International Affairs Joe Nakano will attend the US-Japan summit and support Prime Minister Shinzo Abe and if there is no specific comment on the currency issue at the summit, the upside probability of USD/JPY will increase.
Looking towards the pending BoJ nomination, the candidates names will be announced by the Ministry of Finance next week. They note that the market expectation for the yen depreciation may be growing, though yen selling will depend on the name of the BOJ candidates when announced. They write, “The lower bound for USD/JPY is around 92.00-level for the coming nomination process. If the non-ruling parties, mainly the DPJ in the upper house and Your party, complicate the nomination process again like the DPJ did in 2008, fears of a delay in implementing 'Abenomics' may lower USD/JPY to the lower bound.”