JPY: No end of risk event to look forward - Westpac

Robert Rennie, Research Analyst at Westpac, suggests that the combination of an aggressive run of month end data Friday/ Monday plus the BoJ 2 day ‘outlook’ meeting Monday/ Tuesday next week gives us no end of risk event to look forward to in Japan.

Key Quotes

“We have run with a neutral 100 to 105 range view for the ¥ over the last month or so, and that view has worked well. However, risks of a move higher on technical US$ strength are increasing and it would not take much for the market to take a solid run at 105.

Thus we switch from a very neutral view to a modestly negative view on the ¥, but are yet to see compelling arguments for a significant move much above 105.”