Continue to see USD/JPY range bound - Westpac

Research Team at Westpac, notes that the USD/JPY has avoided trading below 100 again but it’s hard to see this rally sustained until at least the end of the month before the next BoJ meeting or before we see any details of the government stimulus package.

Key Quotes

“Potential global political risks should continue to weigh. USD/JPY towards 100 should at least spark some concern around intervention. Thus continue to see USD/JPY rangebound.

​​​Technical: Sharp bounce off 100 indicates low in place. Could see USD/JPY up towards 107 before breaking out of the downtrend though.”