Forex Flash: USD/JPY looks bullish ahead - BTMU

Bank of Tokyo Mitsubishi UFJ analysts are bullish on USD/JPY for the week ahead and see spot moving within a range of 91.50-94.50.

They note that the candidate's names for the next Governor and two Deputy Governors were announced by the government this week - Haruko Kuroda, the president of the Asian Development Bank, will be nominated as the next central bank Governor, and Hiroshi Nakaso and Kikuo Iwata the Deputy Governors. Next week, they note that the market expectations will be driven by the BoJ´s nomination process in the Diet and the candidates will reveal their own monetary policy implications. They write, “The candidates will reveal their own monetary policy inclinations. Some of their rhetoric may support further JPY depreciation. The BoJ nomination process may set the lower USD/JPY floor at 91.50 next week. On economic indicators, one of the issues is if the upcoming US ISM number go below the critical 50-level. Market sentiments may stay vulnerable even after digesting the implications of the Italian elections.”