A push towards 111.70/ 112.20 on the USD/JPY pair looks like just a matter of time. Nevertheless, economists at Westpac view strength to 112.50 as an opportunity to sell.
Eventual strength to 112.50 an opportunity to sell
“Over the last couple of weeks, we have noted our surprise that USD/JPY has not been able to trade much above the 111.00 level. And while we are testing that level as we write, momentum has not been as strong as we expected.”
“Any and all dips have been well contained, and our sense is that the market will extend up towards 112.50 in the weeks ahead. To be sure, much will likely come down to the key NFP report Friday and whether we see those signs of that ‘very, very strong labor market’ that Fed Chair Powell noted in the press conference.”
“With the Tokyo 2020 Olympics now 3 weeks away, it’s likely that we will see precautions building, especially given that a post-Olympics snap election lies in wait.”
“A push towards 111.70/ 112.20 looks like just a matter of time, though we view eventual strength to 112.50 as an opportunity to sell.”
