USD/JPY still a ‘buy on dips’ – Westpac

By FXStreet Strategist at Westpac Robert Rennie has reiterated that pullbacks towards 112.00 remain a buying opportunity.

Key Quotes

“We have stuck with the view that USD/JPY was a buy on dips to 112 with a stop below 110”.

“However, price action is poor and the combination of weak crude, modestly higher
China fi xes and a softer run of US data this week hardly creates a backdrop for a rapid weakening in the ¥”.

“We stick to the view for another week however. Japanese data should underwhelm versus expectations and adds to the case that the March 14/15 BoJ meeting (ahead of FOMC March 16) may offer more compelling ¥ guidance than the market thinks”.

“We thus stick with a buy on dips to 112 with a stop below 110 strategy for another week”.
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Source:: FX Street