FXStreet (Edinburgh) – Strategist Robert Rennie at Westpac recommends buying the pair on dips in the near term.
“We maintain a buy bias for USD/JPY for the next week”.
“Thankfully Kuroda cleared up confusion around nominal and real effective ¥ levels, allowing USD/JPY to bounce back above 123”.
“However, Yellen clearly did not give the FX market the fuel required to launch it into a yet higher orbit”.
“We view the BoJ outcome/ monthly and CPI as all factors that should continue to support USD/JPY on dips, but would be pragmatic on this”.
“A break below last week’s lows at 122.46 would not sit well with us. So it’s a case of buy on dips with a close stop”.
(Market News Provided by FXstreet)