USD/JPY: Bullish bias, to trade in the 107.00/111.00 range next week – MUFG

Takahiro Sekido, currency analyst at MUFG Bank, points out that negotiations between the US and China on trade and the Brexit deal put the Japanese Yen on the defensive. 

Key Quotes:

“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.”

“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.”