USD/JPY: Neutral view for another week - Westpac

Sandeep Kanihama FXStreet Contributor

Robert Rennie, Research Analyst at Westpac, explains that they have remained on a neutral bias for the last 6 weeks for USD/JPY on the basis of waning yield support for the US$; rising JGB yields not helped by BoJ exit strategy chatter/ lack of clarity on BoJ APP and the ongoing ‘Russia-gate’ issues.

Key Quotes

“Despite the improved price action, we are not overly convinced by the move. Indeed, I like dollar move as “a low intensity grind”.”

“Indeed, with yield spreads moving against the US$, it feels as if the move towards 111.80/ 112 this week is overdone.”

“We hold the neutral view for another week, but dips back towards 110 would see us flip to a buy.”

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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