USDJPY: Buy on dip bias continues - Westpac

Robert Rennie, Research Analyst at Westpac, continues running with a buy dips bias in USD/JPY and to be sure, US yields are running further and faster than Westpac have been thinking and USD/JPY appears to be the preferred vehicle to play it, up 6.55% since the election.

Key Quotes                           

“However, with significant European risk due in just over a week, now is not the time to step up and buy USD/JPY.”

“Still tending to think that a dip back towards the 200 day moving average area looks possible over the next couple of weeks, especially if the Italian referendum leaves Renzi in limbo for a period. Dips back towards 106.50/107.50 area remain a buy.”