USD/JPY Eyes 112.00 in the Near Term – Westpac
According to strategists at Westpac, the pair remains poised to test the 112.00 area in a month’s view.
Key Quotes
“It
is not clear that the flurry of official commentary in support of
intervention on USD/JPY has been much of a factor in the wary
stabilization of USD/JPY around 108 this week”.
“The threat of
action just ahead (or during!) the G20 meeting Thu-Fri is surely not
very high. Yet it may be that speculative accounts are sufficiently
short USD/JPY for now, with global risk appetite showing signs of
improvement”.
“With USD risks broadly lower near term, it is hard to be too upbeat on USD/JPY but perhaps the worst selling has passed”.
“We suspect it will require public BoJ discussion of fresh policy steps at the April 27/28 meeting for USD/JPY to finally form a solid base for recovery over Q2. 112 still seems plausible on a 1 month view”.
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