USD/JPY: Near term dips to be limited to 111.75 - Westpac

Robert Rennie, analyst at Westpac, suggests that they have stuck with a neutral bias for USD/JPY for some time with the strong caveat that we would switch to a buy on dips 111.00/112.50.

Key Quotes

“This area appears to have worked well though clearly could be subject to further tests given Brexit risks into next week and the poor market response to the Trump/ Xi ‘agreement’.”

“Thus risks are we see further weakness through next week though we still expect near term dips to be limited to 111.75 and we still expect some more material strength into end year.”