MUFG Research discusses its tactical bias for USD/JPY and EUR/USD in the near-term.
"USD/JPY – BEARISH BIAS – (105.00-108.00)
"JPY selling flows by Japanese investors appears to be supporting the lower bound for USD/JPY. Key points to watch will be US retail data as well as the Cabinet reshuffle in Japan. Yet these are unlikely to have a big impact on USD/JPY," MUFG notes.
"EUR/USD – NEUTRAL BIAS – (1.0900-1.1250)
"In the week ahead though, Brexit sentiment is likely to remain more supportive for the euro. At the same time, the upcoming ECB policy meeting poses some upside risk for the euro. It will be difficult for the ECB to meet and exceed market expectations for aggressive easing," MUFG adds.