USD/JPY: Selling on rebounds above 107.50 – Westpac

Analysts at Westpac remain frustrated sellers of strength – but a push above 107.50/108 would be needed before thinking about selling the USD/JPY pair.

Key quotes

“With the BoJ last week keeping the monthly JGB purchase unchanged despite the removal of upper limit the week before, the BoJ has added yet another reason for the JPY to remain strong.”  

“We see an inevitable deterioration in US-China trade relations as another reason for further JPY strength to be expected.”

“Sub 107.50/108 is not the level to be establishing shorts near-term. We remain frustrated sellers of strength – and strength for us would be a move above 108.”