USD/JPY neutral, faces further 100/103.50 range – Westpac

Robert Rennie, Strategist at Westpac, keeps the neutral stance on the pair while he also expects further rangebound trading between 100 and 103.50 in the near term.

Key Quotes

“Price action in USD/JPY remains horrible and it almost seems just a matter of time before we trade below 100. We remain of the view that it is becoming increasingly difficult to describe the ¥ move as orderly here. Thus intervention is increasingly justified as we move sub 100, and this may be just enough to hold us above that level”.

“However, rather than being forced to intervene, the BoJ would likely much rather sit this one out until the July 28/29 outlook meeting which should see further asset purchase announcements”.

“USD/JPY is thus likely to remain pinned close to the 100/103.50 range. Neutral at these levels”.