Nov 22 2013

USD/JPY up to 101.20 as Kuroda Pledges to Hold Down Yields

The yen touched a four-month low as Bank of Japan Governor Haruhiko Kuroda said he’ll do his utmost to restrict a rise in long-term yields.

 

“Certainly, the BOJ’s policy stance should be working towards a weaker yen,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. “Higher yields in the States will surely draw more outflows from Japan, where the BOJ is maintaining QE at full pace, and is giving every indication they will continue to do so,” he said, referring to a stimulus program known as quantitative easing.

 

 

Rate Range Projection by Bank

Next week 99.00 - 101.50

Next 3 months 95.00 - 105.00

 

US$ has been stronger this week but likely there will be profit taking US$ sell at over 102 Level,

UA$ will not be so stronger for while.