7 Apr 2015
Buy the dips in USD/JPY – Westpac
FXStreet (Edinburgh) - The area of 117.00 – 119.00 represents a good opportunity to buy USD/JPY, suggested strategists at Westpac.
Key Quotes
“Very little shift in our bias here - we have run with a neutral bias, with a view to buying a modest dip for a number of weeks”.
“Waning US data and yield support, increased oil price volatility associated with tension in Yemen/ Gulf of Aden and thinner market conditions around month end/ quarter end/ year end plus Easter vacation all suggest caution here”.
“We remain of the view that the broad 117-119 range represents dips to buy. We would remain patient here”.
“JPY’s yield signal weakened slightly last week too nudging the model to cut its JPY long as well, though it remains healthy at 10%”.
“Long term charts highlight a momentum failure at 122.00/50 that maintains this level as strong resistance. Short term/medium term momentum factors are relatively neutral, keeping directional bias low”.
Key Quotes
“Very little shift in our bias here - we have run with a neutral bias, with a view to buying a modest dip for a number of weeks”.
“Waning US data and yield support, increased oil price volatility associated with tension in Yemen/ Gulf of Aden and thinner market conditions around month end/ quarter end/ year end plus Easter vacation all suggest caution here”.
“We remain of the view that the broad 117-119 range represents dips to buy. We would remain patient here”.
“JPY’s yield signal weakened slightly last week too nudging the model to cut its JPY long as well, though it remains healthy at 10%”.
“Long term charts highlight a momentum failure at 122.00/50 that maintains this level as strong resistance. Short term/medium term momentum factors are relatively neutral, keeping directional bias low”.