FXStreet (Edinburgh) – In the opinion of strategists at Westpac, the stance for the pair in the near term has now shifted towards the neutral camp.
Key Quotes
“Yet another week goes by with yet another false break below the 118.50 level followed by a reasonable recovery emphasising that the market wants to hold long USD/JPY but keeps on being stopped out by the lack of US$ support”.
“Through the end of next week we should the stakes rising given we have both the FOMC outcome and the BoJ semi-annual outlook”.
“We expect no change in policy from both suggesting the short term downside risks for USD/JPY are shifting”.
“Having stuck with a buy view on USD/JPY for many weeks now, risk reward suggests we should step back to a neutral stance for the week ahead”.
(Market News Provided by FXstreet)