USD/JPY: Buy on dips – Westpac

Robert Rennie, Research Analyst at Westpac, remains a buyer of dips for USD/JPY pair and suggests that they would be surprised to see USD/JPY below 112.

Key Quotes

“We have stuck with a buy the dip strategy for USD/JPY for 4 months now. Initially, this was at 110/112 until mid Feb; we held at 111/113 until last week when we shifted up to 112/114. Against this, we would have a standing order to sell everything we buy above 114.50.”

“Clearly, the FOMC statement and dots leave USD/JPY on the back foot. However, that’s why we have tended to wait for dips to buy.”