USD/JPY: Buy on dips? - Westpac
|Robert Rennie, Research Analyst at Westpac, explains that they have tended to argue that USD/JPY was a ‘buy on dips’ on the assumption that Japanese demand for foreign assets has been improving, that the Fed will raise rates in September and taper before the end of the year.
Key Quotes
“Now, the first and last of those calls look good as Japanese buying of foreign assets has picked up sharply in recent weeks and the Fed was pretty clear on its taper intentions yesterday.”
“However, the FOMC commentary around inflation being ‘more than somewhat’ below 2% has clearly shifted market pricing. We would have to tweak our view again and argue for good support below 110.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.