5 Nov 2015
USD/JPY buy dips towards 120/119.50 – Westpac
FXStreet (Edinburgh) - Sean Callow Strategist at Westpac, sees pullbacks in the pair towards the 120/119.50 area as opportunities to buy.
Key Quotes
“The steady hand from the Bank of Japan last week was no surprise to us nor to many forecasters, with the BoJ instead giving itself more time to hit its 2% inflation target”.
“USD/JPY ended BoJ day lower but overall should be able to hold within slightly higher trading ranges thanks to the FOMC’s unexpectedly clear warning on a Dec rate hike”.
“So long as US data momentum is at least decent, pricing for Dec shouldn’t drop far below the recent 50-60%, underpinning US yields”.
“This should leave specs comfortable with their existing long USD/JPY stance. We remain inclined to buy dips, to say 119.75/120.00”.
Key Quotes
“The steady hand from the Bank of Japan last week was no surprise to us nor to many forecasters, with the BoJ instead giving itself more time to hit its 2% inflation target”.
“USD/JPY ended BoJ day lower but overall should be able to hold within slightly higher trading ranges thanks to the FOMC’s unexpectedly clear warning on a Dec rate hike”.
“So long as US data momentum is at least decent, pricing for Dec shouldn’t drop far below the recent 50-60%, underpinning US yields”.
“This should leave specs comfortable with their existing long USD/JPY stance. We remain inclined to buy dips, to say 119.75/120.00”.