On the USD/JPY pair, a push towards 111.70/ 112.20 appears to be only a matter of time. Nonetheless, Westpac economists see strength to 112.50 as a selling opportunity.
“We’ve been surprised that the USD/JPY hasn’t been able to move much above the 111.00 level in recent weeks. And, while we are currently testing that level, momentum has not been as strong as we had hoped.”
“Any and all falls have been effectively contained, and we believe the market will continue to rise toward 112.50 in the coming weeks. To be sure, the critical NFP report on Friday will be crucial in determining if we see indicators of the’very, very strong job market’ that Fed Chair Powell mentioned in his press conference.”
“With the Tokyo 2020 Olympics only three weeks away, we may expect more measures, especially given the looming post-Olympics snap election.”
“A push towards 111.70/ 112.20 appears imminent, while we see eventual strength to 112.50 as a selling opportunity.”/n
