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USD/JPY could reach to the 126.50 area – Westpac

FXStreet (Edinburgh) - Richard Rennie, Strategist at Westpac, suggested spot could advance towards the 126.50 region.

Key Quotes

“Last week we switched to a sell ¥ bias, though we voiced our concern that comments by Japanese officials might have created a speed bump ahead of the 125 level”.

“If anything, comments from Honda et al suggest little discomfort and we suspect that USD/JPY and ¥ crosses have now moved to a higher plane that could extend all the way up to 126.50”.

“The lower end of the new range should be 122.50/123. We will maintain our buy bias for another week”.

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