USD/JPY: Neutral bias for the week ahead - Westpac

Robert Rennie, Research Analyst at Westpac, suggests that their neutral bias on USD/JPY pair remains intact on the basis that the technical picture had improved.

Key Quotes

“We noted last week that “MACD (12, 26, 9) has been trending higher for the last 3 or 4 weeks, RSI (14) the same”.”

“This picture remains intact though the lack of follow-through to 107.50 has been disappointing, suggesting that geopolitics is capping near term.”

“Bottom line, the technical picture has improved but twin deficits/ Trump tweets are constraining the US$ and geopolitics are supporting the ¥.”

“Thus we stick with a neutral view for the ¥ for the week ahead.”