USD/JPY: Hard to See a Compelling Argument for a Bounce - Westpac
USD/JPY: Hard to See a Compelling Argument for a Bounce - Westpac
Robert Rennie, Research Analyst at Westpac, suggests that the price
action has continued through the last few days, and while USD/JPY holds
trend support at 109.34 for now, without aggressive verbal intervention
or more, it’s hard to see a compelling argument for a bounce.
Key Quotes
“We
remain of the view that G7/G20 has come to some sort of ‘tacit
agreement’ to “avoid statements that could be perceived as inconsistent
with their international commitment to a market-determined exchange
rate”. As such, I think FX markets will continue to push USD/ JPY lower
as long as the authorities will allow. The 38.2% retracement of 75.35 in
2011 to 125.86 in 2015 comes in at 106.57. Scary as it may seem, the
break of 109.34 suggests such a target may be conceivable before markets
start to think about policy options at the April 27/28 BoJ meeting.”
(Market News Provided by FXstreet)
