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USD/JPY supported on FOMC expectations rising - BTMU

FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi noted that the likelihood of a policy move by the FRB has risen considerably and will continue to provide support for USD/JPY.

Key Quotes:

"However, market attention has already shifted to the pace of rate hikes after the December FOMC. At the 16th December FOMC, the Dot chart and Yellen’s comments on the policy outlook might test the dollar’s direction. The recent weak ISM data clearly illustrated the negative impact of the dollar’s appreciation."

"The US stock market may continue to be fragile, which is likely to discourage USD/JPY buying. On 8th December Japan’s GDP data for Q3 is likely to be upgraded thanks to a Q3 corporate survey showing double-digit capex growth. At this stage, the BoJ does not need to go ahead with any further monetary easing.

That should result in caution on any further move higher in USD/JPY over the coming week. Furthermore, heavy euro selling versus the yen in the aftermath of additional policy easing by the ECB may counter the upside in USD/JPY."

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