Robert Rennie, Research Analyst at Westpac, suggests that they have stuck with a neutral bias for USD/JPY for some time with the strong caveat that they would switch to a buy on dips 111.00/112.50.
Key Quotes
“This area appears to have worked well though clearly could be subject to further tests given the key event risks over the next week or so with the EU Brexit Summit scheduled for this Sunday; Powell speech at the Economic Club of NY plus the Fed minutes from the last meeting; and of course the key G20 into the end of next week.”
“Thus risks are we see further weakness through next week though we assume we hold 112.00/20 and we still expect some more material strength into end year.”
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