USD/JPY: Risks remain to the downside - Westpac
Robert Rennie, Research Analyst at Westpac, suggests that they have stuck with a negative view on USD/JPY for the last couple of weeks on the basis the ¥ is cheap; the US$ has not been able to garner much support from Fed expectations and risk sentiment is under pressure.
Key Quotes
“To this list we can obviously add the risks of a tariff/ trade war and a further deterioration in risk sentiment as a result!”
“Thus we remain of the view that risks remain to the downside for USD/JPY over the coming month.”
“However, the BoJ is likely to stick with current guidance on YCC/ APP and thus push back on any expectations of a near term shift in policy. This plus a sense that 105 could be seen as something of a ‘line in the sand’ should help stabilise USD/JPY over the next week.”
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.
