30 Jun 2014
Waiting for better levels to buy USD/JPY - Westpac
FXStreet (Bali) - According to Robert Rennie, FX Strategist at Westpac, the outlook for USD/JPY is a neutral bias at the moment, and wait for better levels to buy USD/JPY.
Key Quotes
"Last week Abe announced a revitalised third arrow. This version is probably best described as a revitalised version of a program that was first announced a year ago, which received pretty poor reviews."
"Measures around investors/investment, corporate taxes, improving the working age population and electricity system reform are all admirable long term developments which should gather momentum as political support develops and legislation moves through the Diet. However, our concern remains that little will be achieved in the near term. The recent BSI was a reminder that business sentiment peaked late 2013 and has already started to roll over. This is certainly not a good backdrop for the Japanese economy through this year."
"Overall, recent data out of the US hardly argues for the US$ to out perform right now. Recent data out of Japan has been disappointing in our view. We expect to see more pressure on the BoJ to do more. But this is a story for Q3 rather than right here right now. Bottom line, we stick a with a neutral bias, and wait for better levels to buy USD/JPY."
Key Quotes
"Last week Abe announced a revitalised third arrow. This version is probably best described as a revitalised version of a program that was first announced a year ago, which received pretty poor reviews."
"Measures around investors/investment, corporate taxes, improving the working age population and electricity system reform are all admirable long term developments which should gather momentum as political support develops and legislation moves through the Diet. However, our concern remains that little will be achieved in the near term. The recent BSI was a reminder that business sentiment peaked late 2013 and has already started to roll over. This is certainly not a good backdrop for the Japanese economy through this year."
"Overall, recent data out of the US hardly argues for the US$ to out perform right now. Recent data out of Japan has been disappointing in our view. We expect to see more pressure on the BoJ to do more. But this is a story for Q3 rather than right here right now. Bottom line, we stick a with a neutral bias, and wait for better levels to buy USD/JPY."