USD/JPY: Buying dips and taking profit at 114.50 is the right way to go - Westpac

Robert Rennie, Research Analyst at Westpac, suggests that they have remained a buyer of dips for USD/JPY for over 4 months now, but possibly got a bit too aggressive shifting their buy level up to 112/114 last week but they are sticking with the view that buying dips and taking profit at 114.50 is the right way to go.  

Key Quotes

“To be sure, into fiscal year end in Japan next week, and until we get clarity on the AHCA bill in the US, the risks appear to be for further weakness on USD/JPY. However, we still see good support down to 111 (38.2% of the 99.02 to 118.66 move).”

“So we stick with the buy on dips strategy for another week, but revert back to 111/113 – and maintain our take profit at 114.50.”