Back
6 Aug 2015
USD/JPY could test 125.90 in the near-term – Westpac
FXStreet (Edinburgh) - Robert Rennie, Strategist at Westpac, suggested the likeliness of the pair to climb to the 125.90 level in the near term.
Key Quotes
“We have stuck with a buy bias for USD/JPY for some time now and an objective of 125”.
“With that objective now hit, key for us will be the extent to which USD/JPY can push through the 125.86 June high”.
“Clearly US data/ FOMC lift-off remains the key driver, and the rise in yields argues for further USD/JPY and ¥ cross strength”.
“However, we stick to the view that the coming push towards 128 is more likely in August/ September”.
“Likely weak Q2 GDP in Japan (August 17) and Fed lift-off (Sep 17) would be the obvious dates to look forward to. We stick with our buy call for another week though would be biased towards neutral north of 125.60/90”.
Key Quotes
“We have stuck with a buy bias for USD/JPY for some time now and an objective of 125”.
“With that objective now hit, key for us will be the extent to which USD/JPY can push through the 125.86 June high”.
“Clearly US data/ FOMC lift-off remains the key driver, and the rise in yields argues for further USD/JPY and ¥ cross strength”.
“However, we stick to the view that the coming push towards 128 is more likely in August/ September”.
“Likely weak Q2 GDP in Japan (August 17) and Fed lift-off (Sep 17) would be the obvious dates to look forward to. We stick with our buy call for another week though would be biased towards neutral north of 125.60/90”.