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22 Oct 2015
USD/JPY outlook remains constructive – Westpac
FXStreet (Edinburgh) - The near term perspective for the USD/JPY remains constructive, suggested Robert Rennie, Strategist at Westpac.
Key Quotes
“Yet another week goes by with yet another false break below the 118.50 level followed by a reasonable recovery”.
“However, each subsequent bounce has fallen short of the previous, emphasising that the market wants to hold long USD/JPY but keeps on being stopped out by the lack of US$ support”.
“The stakes should rise into the FOMC outcome and the BoJ semi-annual outlook”.
“We expect no change in policy from both suggesting the short term downside risks for USD/ JPY are shifting”.
“Having stuck with a buy view on USD/JPY for many weeks now, risk reward suggests we should step back to a neutral stance for the week ahead”.
Key Quotes
“Yet another week goes by with yet another false break below the 118.50 level followed by a reasonable recovery”.
“However, each subsequent bounce has fallen short of the previous, emphasising that the market wants to hold long USD/JPY but keeps on being stopped out by the lack of US$ support”.
“The stakes should rise into the FOMC outcome and the BoJ semi-annual outlook”.
“We expect no change in policy from both suggesting the short term downside risks for USD/ JPY are shifting”.
“Having stuck with a buy view on USD/JPY for many weeks now, risk reward suggests we should step back to a neutral stance for the week ahead”.