USD/JPY supported around 108.60/80 – Westpac

The pair remains well supported in the 108.60/80 band ahead of the next BoJ meeting, suggested strategists at Westpac.

Key Quotes

“With the FOMC meeting Wednesday next week and the BoJ outcome Thursday, it’s probably fair to argue there is nothing much to do in USD/JPY ahead of that batch of risk event”.

“However, the speed with which USD/JPY and ¥ crosses recovered Monday morning’s ‘Doha disaster’ losses makes us think we could see some further short covering ahead of next week’s key policy meetings”.

“We remain of the view that an increase in ETF/ REIT buying would make sense from the BoJ to help further break the connection between the ¥ and the Nikkei and that such a move would be a positive surprise here. We shift back to a buy for the week ahead”.