4 Aug 2015
USD/JPY: still buy the dips – Westpac
FXStreet (Edinburgh) - Strategists at Westpac have reiterated their recommendation of buying the pair on dips.
Key Quotes
“We have stuck with a buy USD/JPY dips bias for a number of weeks now”.
“We still see that as a story that will develop more fully through August/ September”.
“Likely weak Q2 GDP in Japan (August 17) and Fed lift-off (Sep 17) should be the catalysts for a reasonably significant move higher in USD/JPY”.
“Between now and then, use dips below 123 as an opportunity to buy. Looming Obon quasi-holidays will remove even more liquidity from the market in the local summer doldrums”.
“Price has stalled at 124.35/60 resistance but remains above 38.2% retracement support and key breakout levels at 122.70/00. Break of 124.60 targets 125.60/90. Neutral bias while resistance holds”.
Key Quotes
“We have stuck with a buy USD/JPY dips bias for a number of weeks now”.
“We still see that as a story that will develop more fully through August/ September”.
“Likely weak Q2 GDP in Japan (August 17) and Fed lift-off (Sep 17) should be the catalysts for a reasonably significant move higher in USD/JPY”.
“Between now and then, use dips below 123 as an opportunity to buy. Looming Obon quasi-holidays will remove even more liquidity from the market in the local summer doldrums”.
“Price has stalled at 124.35/60 resistance but remains above 38.2% retracement support and key breakout levels at 122.70/00. Break of 124.60 targets 125.60/90. Neutral bias while resistance holds”.