USD/JPY: buy the dips towards 112.00 – Westpac

By FXStreet Robert Rennie, Strategist at Westpac, has recommended buying spot on dips to the 112.00 area.

Key Quotes

“Last week we argued that USD/JPY was a buy on dips to 112 with a stop below 110”.

“We were surprised by the lack of commentary from MoF/ BoJ officials through last week, though the level of concern certainly rose Friday”.

“We have started to see some signs that Japanese households/ balance sheets have started to react to NIRP and a strong ¥ (though today’s weekly MOF data is disappointing)”.

“The combination of modest Japanese demand plus a run of better US$ tells us to stick with our buy view for another week”.
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Source:: FX Street