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28 Jul 2015
USD/JPY keeps the neutral bias near term – Westpac
FXStreet (Edinburgh) - In the opinion of strategists at Westpac, the outlook for the pair remains neutral for the time being.
Key Quotes
“We have stuck with a USD/JPY buy dip bias for a number of weeks now”.
“To be sure, this bias has assumed that Greece would either be solved or kicked significantly down the road”.
“That appears to be the case now, though Chinese equity volatility remains a risk”.
“So keep an eye on near term price action, though upside for us is likely to be based more on strong Q2 GDP in the US (Thursday) and disappointing Q2 GDP in Japan (Aug 17)”.
“Price has stalled at 124.35/50 resistance but remains above 38.2% retracement support and key breakout levels at 122.70/00. Break of 124.50 targets 125.60/90. Neutral bias at current levels”.
Key Quotes
“We have stuck with a USD/JPY buy dip bias for a number of weeks now”.
“To be sure, this bias has assumed that Greece would either be solved or kicked significantly down the road”.
“That appears to be the case now, though Chinese equity volatility remains a risk”.
“So keep an eye on near term price action, though upside for us is likely to be based more on strong Q2 GDP in the US (Thursday) and disappointing Q2 GDP in Japan (Aug 17)”.
“Price has stalled at 124.35/50 resistance but remains above 38.2% retracement support and key breakout levels at 122.70/00. Break of 124.50 targets 125.60/90. Neutral bias at current levels”.