USD/JPY neutral in the very near term – Westpac

The perspective for USD/JPY remains neutral for the upcoming week, suggested strategists at Westpac.

Key Quotes

“We maintain a neutral stance for USD/JPY for another week”.

“The chorus of Fed speakers emphasising that June is live has largely been offset by the chasm that has opened between US and Japanese officials on the ¥”.

“As long as this is the case (and G7 Leaders’ Summit this weekend will be an important test) then it is down to Japanese reform to drive the ¥ lower”.

“Without this, USD/JPY should continue trading in a 108.70 to 110.70 trading range. Keep an eye on the month end raft of data Friday and through next week”.