29 Jan 2015
USD/JPY outlook back to neutral – Westpac
FXStreet (Edinburgh) - Richard Rennie, strategist at Westpac revised the outlook for USD/JPY to neutral.
Key Quotes
“With the BoJ now out the way and unlikely to consider revisiting monetary policy settings until the end of April (and arguably July assuming crude prices start to stabilise in Q2), it’s hard to see where the downside in the ¥ will emerge from”.
“US yields continue to wither away and curves flatten; Greece is emerging as significant risk event for February; meanwhile equity market sentiment has softened too as US earnings weaken”.
“¥ crosses look vulnerable near term, so we switch back to a neutral bias for USD/JPY and revise our 1 month target to 118”.
Key Quotes
“With the BoJ now out the way and unlikely to consider revisiting monetary policy settings until the end of April (and arguably July assuming crude prices start to stabilise in Q2), it’s hard to see where the downside in the ¥ will emerge from”.
“US yields continue to wither away and curves flatten; Greece is emerging as significant risk event for February; meanwhile equity market sentiment has softened too as US earnings weaken”.
“¥ crosses look vulnerable near term, so we switch back to a neutral bias for USD/JPY and revise our 1 month target to 118”.