Analysts from The Bank of Tokyo-Mitsubishi UFJ, explain that the yen remains strong in the market and kept a neutral tone in USD/JPY, with a range between 111.50 and 114.50; also warned about downside risks. Key Quotes: “Foreign asset buying by Japanese investors has not lifted USD/JPY, and JPY buying by exporters has capped topside. In remarks made on March 7th, BoJ Governor Haruhiko Kuroda explained his policy stance. The BoJ may be trying to calm market volatility in order to achieve its 2% inflation policy target and positive growth momentum through active investment.” “USD/JPY could be fairly volatile ahead of the BoJ and FOMC meetings. The Fed may not raise the policy rate, and Chair Janet Yellen may also offer hints about the next policy move. The US economy may grow further, even under global deflationary pressure and uncertainty about China’s economy. One risk may be Yellen’s hawkishness in communication. Such hawkishness could hurt global stock and commodity markets and weigh on USD/JPY.” “JPY buying pressure from exporters may build further ahead of the end of the fiscal year. USD/JPY is increasingly likely to drop further at this stage.” For more information, read our latest forex news.