21 Jul 2015
USD/JPY buy the dips – Westpac
FXStreet (Edinburgh) - Strategists at Westpac believes that pullbacks in the pair represent buying opportunities.
Key Quotes
“With Greece now looking like we have achieved closure focus turns to the approaching FOMC meeting”.
“However, worth noting the BoJ revised 2015 GDP to 1.7% from 2% and revised CPI from 2% to 1.9% (2015 from 0.8% to 0.7%) last week”.
“We expect to see a very soft Q2 GDP released August 17 and that should open up some speculation about a potential ‘tweak’ to monetary policy in either September or October”.
“Given that this will likely coincide with Fed lift-off, we like upside for USD/JPY through second half of August and into September. Between now and then buy dips”.
“A sustainable uptrend has re-emerged since the break above key resistance at 122.70/00. Momentum is highly supportive of a minimum rally to 125.60/90”.
Key Quotes
“With Greece now looking like we have achieved closure focus turns to the approaching FOMC meeting”.
“However, worth noting the BoJ revised 2015 GDP to 1.7% from 2% and revised CPI from 2% to 1.9% (2015 from 0.8% to 0.7%) last week”.
“We expect to see a very soft Q2 GDP released August 17 and that should open up some speculation about a potential ‘tweak’ to monetary policy in either September or October”.
“Given that this will likely coincide with Fed lift-off, we like upside for USD/JPY through second half of August and into September. Between now and then buy dips”.
“A sustainable uptrend has re-emerged since the break above key resistance at 122.70/00. Momentum is highly supportive of a minimum rally to 125.60/90”.