Buy the dips in USD/JPY – Westpac

FXStreet (Edinburgh) - Strategists at Westpac keep the ‘buy-on-dips’ outlook for the pair on pullbacks to the 117-119 area.

Key Quotes

“At the risk of sounding like a broken record here, we maintain a neutral bias for ¥ and EUR/JPY for yet another week”.

“However, we remain of the view that USD/JPY remains a buy on dips and target the 117/119 band”.

“Key will be Q1 US GDP plus the FOMC’s tone. If the Fed does formally rule out a move in June, it’s hard to see a lot of upside in USD/JPY”.

“Short term/medium term momentum remains negative in USDJPY as price sets up to test a host of recent lows down to 118.33. Anticipate a further steady decline”.

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