15 Jul 2014
USD/JPY remains neutral – Westpac
FXStreet (Edinburgh) - The outlook on the Japanese yen would remain neutral in the very near term, suggested analysts at Westpac Global Strategy Group.
Key Quotes
“Japan’s recent run of softer data should increase the pressure on the BoJ to further tweak its guidance”.
“While we may have to wait for Q2 GDP on 13 Aug rather than this week’s meeting, it’s hard to see what the BoJ is waiting for, now that Abe has had another shot at the third arrow”.
“However, this does not shift our neutral view on USD/JPY and ¥ crosses”.
“The FOMC minutes suggest Yellen’s testimony will not provide a large, sustained rise in US yields. Only a break of USD/JPY 100.70/90 support would become interesting”.
Key Quotes
“Japan’s recent run of softer data should increase the pressure on the BoJ to further tweak its guidance”.
“While we may have to wait for Q2 GDP on 13 Aug rather than this week’s meeting, it’s hard to see what the BoJ is waiting for, now that Abe has had another shot at the third arrow”.
“However, this does not shift our neutral view on USD/JPY and ¥ crosses”.
“The FOMC minutes suggest Yellen’s testimony will not provide a large, sustained rise in US yields. Only a break of USD/JPY 100.70/90 support would become interesting”.