USD/JPY Upside Could Extend to 112 – Westpac
According to strategists at Westpac, the current upside in the pair could reach the 112.00 area.
“Last week we shifted back to a neutral bias and maintain that view this week”.
“Key will be the upcoming G7 deputies meeting this weekend and leaders’ summit next weekend in Japan”.
“Japan has placed growth on the agenda, though the extent to which the final communique reflects this remains to be seen”.
“Meanwhile doorstop guidance from US officials will be closely watched too given recent commentary that classified moves in USD/JPY as orderly”.
“All up, tend to see USD/JPY in a 108/109.50 range, though risks around FOMC minutes and US CPI suggest risk is to the topside”.
“USD/JPY just probing above 109.50 resistance and momentum looking supportive. Look for this move to extend to 112”.