10 Oct 2014
USD/JPY buy on dips towards 105.50/106.50 – Westpac
FXStreet (Edinburgh) - Deeper pullbacks in spot will be buying opportunities, recommended Robert Rennie, FX Strategist at Westpac.
Key Quotes
“Last week we noted a string of Japanese officials calling for caution on the ¥”.
“To that we have to add PM Abe’s very public comments in the Diet”.
“So it remains pretty clear that USD/JPY now has a pretty hard cap at 109.50/110 and that risks are we continue to push lower”.
“Given the improved risk, USD/JPY remains a buy on dips. But dips for us are way down in the 105.50/106.50 range”.
“So we maintain a neutral stance for another week – collapsing US yields and a lazy long USD/JPY market position suggest waiting for better levels to buy in coming sessions”.
Key Quotes
“Last week we noted a string of Japanese officials calling for caution on the ¥”.
“To that we have to add PM Abe’s very public comments in the Diet”.
“So it remains pretty clear that USD/JPY now has a pretty hard cap at 109.50/110 and that risks are we continue to push lower”.
“Given the improved risk, USD/JPY remains a buy on dips. But dips for us are way down in the 105.50/106.50 range”.
“So we maintain a neutral stance for another week – collapsing US yields and a lazy long USD/JPY market position suggest waiting for better levels to buy in coming sessions”.