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27 Aug 2013
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, leaving the yen in familiar territory for now.”
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, leaving the yen in familiar territory for now.”