USD/JPY still in consolidative range – Westpac

FXStreet (Edinburgh) - Sean Callow, Strategist at Wetspac, points to a neutral bias in the short term on the pair.

Key Quotes

“Recent USD/JPY price action reinforces our existing neutral bias”.

“Rallies are likely to be crimped by the effective cap on US yields from mixed US data flow but risk sentiment is probably resilient enough for USD/JPY dips to meet
bargain-hunters”.

“Spec positioning is the least stretched (long USD/JPY) since July 2014. Rough range 117-120.50 until further notice”.