Robert Rennie, Research Analyst at Westpac, suggests that they have stuck with a neutral near term/ more constructive 1m bias for USD/JPY pair on the basis that the 108 to 111 range was well defined but we do see a break higher in the months ahead as the ‘positive dollar fundamentals’ shine through.
Key Quotes
“The potential for all out trade war/ European political risks and EM volatility remain potent factors that should contain USD/JPY within the current range though the lack of downside over the last week or so suggests stronger underlying demand.”
“Thus at the risk of being too confident in the near term, we shift our near term neutral bias back to positive again.”
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