Flash: USD/JPY still remains tapering-driven – Westpac

FXstreet.com (Lisbon) - The sales tax debate has gained some momentum the last week following the ‘knowledgeable people’ panel meeting, which clearly has impacted the USD/JPY in the near-term, notes Sean Callow, a Global FX Strategist at Westpac.

Key quotes

“This makes the tax increase to 8% next April and 10% in October 2015 more likely. An upward revision to Q2 GDP would help as would a decent BSI.”

“However, the Abe administration has stated it will only make a decision on the tax after the Tankan (October 1) so for us, USD/JPY remains tapering driven though a clear buy on dips.”