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Thomson Reuters
Aug 03 - 01:24 PM
USD/JPY: Neutral Here; Japanese Companies' Dividend Conversion Likely To Weigh - MUFG
First appeared on eFXplus on Aug 03 - 11:30 AM

MUFG Research discusses USD/JPY outlook and adopts a neutral bias but notes that risks look skewed to the downside on Japanese companies' dividend activity around this time of the year.

"Expectations of a weaker JPY following the BoJ meeting have wound down, and the underlying trend will emerge.

This is the time of year when Japanese companies convert their dividend and interest income into JPY, which typically puts a ceiling on USDJPY.

The US and Japan will hold trade talks on August 9, and if the US puts more pressure on Japan, then be warned that the downward bias on Japanese stocks and USDJPY could weigh more heavily," MUFG argues. 

BTMU Research/Market Commentary


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