30 Apr 2015
USD/JPY neutral bias – Westpac
FXStreet (Barcelona) - Robert Rennie of Westpac, shares the key event risk for JPY in the next week, and further maintains a buy-on-dips/neutral approach on USD/JPY.
Key Quotes
“Event risk: With the BoJ out the way, the month almost over and Golden Week all but upon us, the data and event calendar is set to slow sharply. However, between now and then, we have CPI and employment data.”
“The BoJ’s downward revision to FY15 CPI forecasts from 1% to 0.8% will likely take the sting out of the upcoming slump in Tokyo and next month’s national CPI as the consumption tax hike drops out the equation. Beyond that, it’s all quiet”
“Bias: We continue with our neutral/ buy dips bias. With the US$ on the back foot, we remain patient. Golden Week complicates the view – yen crosses are looking vulnerable.”
“DXY cannot keep falling without USD/JPY succumbing to gravity. Yet with Japanese FX players on vacation next week, it can for a while.”
“So we remain on the sidelines, and certainly do not feel compelled to chase EUR/JPY higher, even though we see 134 on a 1 month view.”
Key Quotes
“Event risk: With the BoJ out the way, the month almost over and Golden Week all but upon us, the data and event calendar is set to slow sharply. However, between now and then, we have CPI and employment data.”
“The BoJ’s downward revision to FY15 CPI forecasts from 1% to 0.8% will likely take the sting out of the upcoming slump in Tokyo and next month’s national CPI as the consumption tax hike drops out the equation. Beyond that, it’s all quiet”
“Bias: We continue with our neutral/ buy dips bias. With the US$ on the back foot, we remain patient. Golden Week complicates the view – yen crosses are looking vulnerable.”
“DXY cannot keep falling without USD/JPY succumbing to gravity. Yet with Japanese FX players on vacation next week, it can for a while.”
“So we remain on the sidelines, and certainly do not feel compelled to chase EUR/JPY higher, even though we see 134 on a 1 month view.”