USD/JPY: Between JPY repatriation and US data - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, explained that while incoming US data may support the upside in USD/JPY  seasonal JPY repatriation may push it lower. They see the pair with a neutral bias for next week, between 100.00 and 103.00.

Key Quotes:

“Despite a very strong US non-farm payrolls report for July, USD/JPY topside has been heavy at under 103. The July FOMC minutes (to be released August 17) and other US data may support a USD/JPY rise. But seasonal JPY repatriation by Japanese investors may push USD/JPY lower next week.”

“Japan’s 2Q GDP data (August 15) and July trade data (August 18) are not likely to impact USD/JPY much over the summer holidays. Many Japanese politicians will take their summer vacations this month, slowing the BoJ’s comprehensive assessment of monetary policy as well as the fiscal stimulus package.”