BOTMUFJ about USD/JPY
Bank of Tokyo Mitsubishi UFJ expects USD/JPY to trade in the 102.00/98.00 range.
If NFP reading is worse than expected (“It’s hard to be optimistic about payrolls after the weak ADP number,” says Credit Agricole), USD/JPY will decline due to dollar selling. In addition, the Bank of Japan probably won’t change its monetary policy next week and this will be another factor limiting the pair on the upside.
At the same time, Japan’s trade deficit and real foreign direct investment will continue to support yen selling. Short-term improvement in equities after the Nikkei’s recent falls may encourage dollar buying. USD/JPY upside momentum seems stronger than its downside risk.