USD/JPY: Neutral bias - Westpac

Sandeep Kanihama FXStreet Contributor

Robert Rennie, Research Analyst at Westpac, suggests that they have stuck with a neutral bias for the last 3 or 4 weeks for the USD/JPY pair though with the strong caveat that they would switch to a buy on dips to 110.50/111.00.

Key Quotes

“This view was on the basis that Japanese investors would tend to use higher yields and a stronger ¥ as a buy opportunity.”

“We were clearly very correct view on our Japanese investor view – Japanese investors bought the most US bonds in 2 years in Sep - and thus too cautious on our level to buy the dip.”

“At the risk of remaining too cautious, we will keep our neutral bias for another week given that impetus for a sharply higher USD does not seem to be present right now. However, we would shift our buy level up to 112.50/113.”

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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