18 Jan 2016
JPY: Shift the bias back to a buy bias - Westpac
FXStreet (Delhi) – Robert Rennie, Research Analyst at Westpac, suggests that they have shifted their bias back to neutral for USD/JPY late last year as they expected a correction post Fed.
Key Quotes
“Clearly, that correction has gone a lot further than we expected. The speed with which the ¥ has strengthened (JPYNEER at highs back to Oct 2014) and the lack of commentary from Japanese officials has doubtless raised some eyebrows. With crude prices collapsing it’s hard to see where inflation is going to appear from. So watch BoJ closely and expect the level of concern to rise. We shift the bias back to a buy bias, though dips below 116.00/50 would see us ‘stopped out’.”
Key Quotes
“Clearly, that correction has gone a lot further than we expected. The speed with which the ¥ has strengthened (JPYNEER at highs back to Oct 2014) and the lack of commentary from Japanese officials has doubtless raised some eyebrows. With crude prices collapsing it’s hard to see where inflation is going to appear from. So watch BoJ closely and expect the level of concern to rise. We shift the bias back to a buy bias, though dips below 116.00/50 would see us ‘stopped out’.”