USD/JPY remains a buy on dips - Westpac

Sandeep Kanihama FXStreet Contributor

Robert Rennie, Research Analyst at Westpac, explains that with various Fed speakers all singing from the same “appropriate soon” song sheet, the US$ leg looks like it has found a base here but risks from Dutch and French elections and of course the odd ‘twitter bomb’ leave the ¥ leg a near term risk and thus he stick with the view that USD/JPY remains a buy on dips.

Key Quotes

“Two weeks ago we shifted that dip level up from 110/112 to 111/113, and that strategy has worked well. We maintain then same levels this week.”

“What would force us to change our minds and switch to an outright buy? A March Fed hike; a market-friendly outcome in the French elections and the BoJ stepping back from the ¥80tn asset purchase target. Until either or all of those happen, we stick to a buy the dip rather than outright 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.

AUD/USD consolidates above 0.6950 amid risk aversion

AUD/USD consolidates in the Asian session on Thursday, trading just above 0.6950 as traders assess developments in the Middle East crisis. The Pentagon reportedly ordered readiness for potential strikes against Iran. This keeps the geopolitical risk premium in play, which, along with hawkish FOMC Minutes and elevated US bond yields, will likely keep the US Dollar underpinned at the expense of the pair.

USD/JPY slips below 158.00 as USD retreats

USD/JPY returns to the red below 158.00 in the Asian session on Thursday amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, the US Dollar eases from near an 18-month high on profit taking, ignoring Wednesday's hawkish FOMC Minutes and the risk of a further escalation of tensions in the Middle East, adding to the pair's pullback.

Gold bounces back above $4,100 despite US-Iran risks

Gold resumes the overnight bounce above $4,100 in Thursday’s Asian session, helped by a broad US Dollar retreat, even as US-Iran geopolitical risks resurface. However, further recovery appears elusive, following hawkish FOMC Minutes. Elevated Treasury bond yields and potential US attacks on Iran could also act as a headwind for Gold price rebound.

Cryptocurrencies face new security risk as Ethereum researcher warns of potential ECDSA break

Ethereum (ETH) researcher Justin Drake has urged the crypto industry to begin preparing for a potential breakthrough that could undermine the cryptographic systems securing digital assets. In an X post on Wednesday, Drake called on the industry to calmly enter what he described as “bunker mode.”

The Fed trap is tightening

Gold is getting punched in the mouth again today. And if you’ve been following this bull market for any length of time, you know that’s not necessarily a bad thing. In fact, it may be giving us exactly the opportunity we’ve been waiting for.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.