Trade of the week from Mitsubishi UFG
Analysts at MUFG recommend selling USD/JPY at spot with a target of 1036.80 and a stop at 107.60.
"The USD/JPY rate has fallen sharply today and we see scope for that extending over the coming weeks," they wrote on Friday. "The FOMC meeting next week is also likely to be dovish, and we see scope for downside risks for the dollar post-FOMC next. Finally, seasonal patterns for USD/JPY show the coming two months as strongly biased to the downside."
