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4 Mar 2015
Neutral bias intact around USD/JPY – Westpac
FXStreet (Edinburgh) - According to analysts at the Australian Westpac, the outlook on the pair remains neutral in the near term.
Key Quotes
“We remain neutral USD/JPY. The negative shift in US data momentum looks like it continues near term, while JGB yields remain towards the upper end of recent ranges”.
“However, global risk sentiment continues to improve and Greece is certainly not seen as the dislocative issue it was mid Feb”.
“All this argues for buying USD/JPY on dips to 118. This week's warnings from Abe advisor Honda suggest 120+ remains difficult near term. Hence the neutral bias”.
“Momentum is low as a tight range holds price. Continue to favour a shift lower to below 117.00 while price remains below 119.60.
Key Quotes
“We remain neutral USD/JPY. The negative shift in US data momentum looks like it continues near term, while JGB yields remain towards the upper end of recent ranges”.
“However, global risk sentiment continues to improve and Greece is certainly not seen as the dislocative issue it was mid Feb”.
“All this argues for buying USD/JPY on dips to 118. This week's warnings from Abe advisor Honda suggest 120+ remains difficult near term. Hence the neutral bias”.
“Momentum is low as a tight range holds price. Continue to favour a shift lower to below 117.00 while price remains below 119.60.