USD/JPY: Sell at 103.30, stop at 104.40 - Westpac

Research Team at Westpac, suggests that their macro signal is neutral USD/JPY but their model and technical inputs are bearish USD/JPY, giving them a sell on strength signal.

Key Quotes

“We sell at 103.30, stop at 104.40. Price action in USD/JPY post the Brexit slump has been horrible and a lack of verbal intervention on the drop to 100 has not helped either. Sure, a decent rebound in payrolls may be enough to prevent a move lower this week.

However, bounces are clearly just being used by the market as an opportunity to reload and sell. It looks like the market is set to continue to test the BoJ’s resolve and a move below 100 is just a matter of time.”