Forex Flash: USD/JPY looks neutral ahead - BTMU

FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts believe that USD/JPY looks neutral ahead and may trade between 94.00-97.00.

They begin by noting that next week they feel that the pair will remain stable and supported by the expectation of BoJ easing and the improvement of the US economy. However, they have not received any new insight into the monetary policy outlook from the new BoJ Governor Kuroda’s press conference today. They continue to note that the first BoJ meeting with the new Governor will be held from April 3-4 and although Kuroda did not rule out today holding an emergency in the interim. They see that the release of the next US employment report for March will be released just after on the 5th of April. They write, “The lack of clear catalyst in the week ahead is likely to make it difficult for USD/JPY to rise above 96.71 recorded on March 8th. On the other hand, should Cyprus fail to reach an agreement with external creditors by Monday, the yen may strengthen driven by safe haven flows although any upside is likely to prove limited.”