FXStreet (Guatemala) – Analysts at Bank of Tokyo Mitsubishi explained that USD/JPY has been highly volatile over the last week, beginning at above 118 on January 15th and dipping to 115.97 on the 20th amidst heightened global uncertainty.
Key Quotes:
“Next week’s FOMC and BoJ meetings are unlikely to change this risk-off sentiment. The current uncertainty stems primarily from weak perceptions pertaining to the prospects for China’s economy. Momentum remains in favour of a lower USD/JPY in the near-term.
Market expectations for more monetary easing may grow slightly ahead of the upcoming BoJ meeting, but such expectations will not be enough to lift USD/JPY materially. Moreover, the FOMC may want to keep their options open for their next decision in this environment.
Next week, Japan’s December trade balance figures may show a recovery to a surplus thanks to falling oil and LNG prices. Market participants may also buy JPY further because of this improved external account.”
(Market News Provided by FXstreet)