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21 May 2015
Neutral bias persists in USD/JPY – Westpac
FXStreet (Edinburgh) - Robert Rennie, Strategist at Westpac, keeps the neutral tone for the pair in the near term.
Key Quotes
“We have stuck with a neutral bias in USD/JPY for many months now”.
“This seems to have been the right thing to have done given the recent 118.5 to 121.5 3 month trading range”.
“However, the move towards the top of the range has gotten the market more tuned to the idea that we will have to break out at some point”.
“Yield spreads suggest not now, so we will stick with a neutral bias for another week, though we revise our 1 month target to 120”.
Key Quotes
“We have stuck with a neutral bias in USD/JPY for many months now”.
“This seems to have been the right thing to have done given the recent 118.5 to 121.5 3 month trading range”.
“However, the move towards the top of the range has gotten the market more tuned to the idea that we will have to break out at some point”.
“Yield spreads suggest not now, so we will stick with a neutral bias for another week, though we revise our 1 month target to 120”.