USD/JPY: Buy on dips - Westpac

Sandeep Kanihama FXStreet Contributor

Robert Rennie, Research Analyst at Westpac, suggests that they are reverting back to their previous ‘buy dips’ bias and suggests to look to buy dips 108/110, but expect USD/JPY to be capped by 112.00/50.

Key Quotes

“With round one of the French elections now behind us, reduced concern on the Korean peninsula and US equity markets back to recent highs, USD/JPY has quickly rebounded back to our one month target of 111.”

“We have stuck with a neutral bias for the last two weeks, concerned by rising risk aversion.”

“No change from the BoJ means we still have ongoing confusion over whether the BoJ is targeting ¥80tn JGB purchases or zero JGB yields.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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