9 Jun 2015
USD/JPY remains a buy for 126.50 – Westpac
FXStreet (Barcelona) - The Westpac Team maintains a buy bias on USD/JPY targeting 126.50 levels, and expecting any dips to remain supported a 123.90/124.30.
Key Quotes
“Last week we switched to a sell ¥ bias, though we voiced our concern that comments by Japanese officials might have created a speed bump ahead of the 125 level. If anything, comments from Honda et al suggest little discomfort and we suspect that USD/JPY and ¥ crosses have now moved to a higher plane that could extend all the way up to 126.50. The lower end of the new range should be 122.50/123. We will maintain our buy bias for another week.”
“Model: The misadventure with JPY longs last week has been duly reversed, the model flipping back to neutral JPY.”
“Technical: Recent close above the 2007 highs at 124+ confirms a sustainable USDJPY uptrend. Interim target at 125.60/90 achieved. Support at 123.90/124.30 should hold ahead of new trend highs.”
Key Quotes
“Last week we switched to a sell ¥ bias, though we voiced our concern that comments by Japanese officials might have created a speed bump ahead of the 125 level. If anything, comments from Honda et al suggest little discomfort and we suspect that USD/JPY and ¥ crosses have now moved to a higher plane that could extend all the way up to 126.50. The lower end of the new range should be 122.50/123. We will maintain our buy bias for another week.”
“Model: The misadventure with JPY longs last week has been duly reversed, the model flipping back to neutral JPY.”
“Technical: Recent close above the 2007 highs at 124+ confirms a sustainable USDJPY uptrend. Interim target at 125.60/90 achieved. Support at 123.90/124.30 should hold ahead of new trend highs.”