USD/JPY remains a buy on dips - Westpac
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.
