Flash: USD/JPY still a buy on dips – Westpac

FXstreet.com (New York) – Sean Callow, a Global FX Strategist at Westpac analyzes the short-term outlook of the USD/JPY.

Key quotes

“Our inclination is still to buy USD/JPY dips in the pair but near-term trade looks contained within a rough 97 – 99.75 range, with the focus in Tokyo on the degree of political courage on the planned sales tax hike.”

“Abe’s tax panel meets this week. Failure to proceed with the long-promised but politically unnerving tax increase would upset investors counting on Abe to make tough decisions.”

“Nikkei losses would again weigh on USD/JPY. But the final decision is probably some weeks distant, …read more