11 Feb 2016
USD/JPY: a buy in the short-term – Westpac
Strategist at Westpac Robert Rennie noted the bullish outlook on the pair for the upcoming sessions.
Key Quotes
“We have run with a lazy neutral bias for the last couple of weeks, waiting for better levels to buy USD/JPY sub 117”.
“Those levels have come and gone, yet USD/ JPY has continued falling”.
“We are surprised by the limited commentary from the BoJ/ MoF in recent sessions, but with our JPY NEER model at highs back to Q3 2014, the level of frustration will have to be rising”.
“We expect the BoJ/ MoF to react verbally to rapid ¥ appreciation, thus we shift our bias back to a buy for the week ahead. Clearly, we would need to run a tight stop on this – stop at or below 110”.
Key Quotes
“We have run with a lazy neutral bias for the last couple of weeks, waiting for better levels to buy USD/JPY sub 117”.
“Those levels have come and gone, yet USD/ JPY has continued falling”.
“We are surprised by the limited commentary from the BoJ/ MoF in recent sessions, but with our JPY NEER model at highs back to Q3 2014, the level of frustration will have to be rising”.
“We expect the BoJ/ MoF to react verbally to rapid ¥ appreciation, thus we shift our bias back to a buy for the week ahead. Clearly, we would need to run a tight stop on this – stop at or below 110”.