Back
19 May 2015
USD/JPY short-term upside bias – Westpac
FXStreet (Barcelona) - According to Westpac, technicals suggest USD/JPY favours the upside in the short-term, with the nearest resistance at 120.80/121.20.
Key Quotes
“For all the nasty price action on many USD pairs, hinting at painful squeezes on popular trades, USD/JPY looks strangely calm. Japanese data has not inspired any talk of the BoJ tapering its QE; rather the risks seem to be of yet further easing, albeit not short term. Investors seem willing to persist with buying USD/JPY dips, taking the long view.”
“So long as 118.65 - 120.35 remains intact, we are content to remain neutral, while retaining the upward bias over 3 months.”
“Model: The model runs with a healthy 15% long JPY position for the week ahead with a surprisingly decent growth signal and healthy long term valuation keeping the model interested in JPY from the long side.”
“Technical: USD/JPY dips held around multiple lows down to 118.33 in the recent weeks. Mild short term upside bias. Resistance remains firm towards 120.80/121.20.”
Key Quotes
“For all the nasty price action on many USD pairs, hinting at painful squeezes on popular trades, USD/JPY looks strangely calm. Japanese data has not inspired any talk of the BoJ tapering its QE; rather the risks seem to be of yet further easing, albeit not short term. Investors seem willing to persist with buying USD/JPY dips, taking the long view.”
“So long as 118.65 - 120.35 remains intact, we are content to remain neutral, while retaining the upward bias over 3 months.”
“Model: The model runs with a healthy 15% long JPY position for the week ahead with a surprisingly decent growth signal and healthy long term valuation keeping the model interested in JPY from the long side.”
“Technical: USD/JPY dips held around multiple lows down to 118.33 in the recent weeks. Mild short term upside bias. Resistance remains firm towards 120.80/121.20.”