USD/JPY: Corrective pullback expected - Westpac

USD/JPY topped out, as expected, at 114.50 last week and from here, a corrective pullback to around 112.00 could be expected, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“JGB yields are likely to continue their steady move higher as the BoJ continues its ‘stealth taper’ move, the 10yr up from 0.00% to 0.11% since April.”

“The BoJ meeting next week is a perfect opportunity for the BoJ to clarify its balance sheet stance. Is it still targeting an ¥80tn annual pace of increase in JGB holdings, or something more fluid?”