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12 Mar 2015
USD/JPY neutral bias – Westpac
FXStreet (Barcelona) - Robert Rennie of Westpac, explains the reasons behind maintaining a neutral bias on USD/JPY, expecting the pair to range-trade, with dips limited to 118/120.
Key Quotes
“There are two or three factors that are holding us back from a long USD/JPY bias. Firstly, Honda’s recent comments about the ¥; secondly risks we see an ‘impatient tantrum’ next week; thirdly that Greece becomes a larger risk event as the end of the month approaches.”
“In the face of a stronger US$, it’s not clear to us that these are factors that will do anything other than keep USD/JPY in a range.”
“However, there are much better ways to express long US$ than versus ¥ in our view.”
“Stick to neutral for another week, but dips limited to 118/120.”
Key Quotes
“There are two or three factors that are holding us back from a long USD/JPY bias. Firstly, Honda’s recent comments about the ¥; secondly risks we see an ‘impatient tantrum’ next week; thirdly that Greece becomes a larger risk event as the end of the month approaches.”
“In the face of a stronger US$, it’s not clear to us that these are factors that will do anything other than keep USD/JPY in a range.”
“However, there are much better ways to express long US$ than versus ¥ in our view.”
“Stick to neutral for another week, but dips limited to 118/120.”