18 Feb 2016
USD/JPY: buy the dips towards 112.00 – Westpac
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”.
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”.