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21 May 2014
USD/JPY buy on dips after the BoJ meeting – Danske Bank
FXStreet (Edinburgh) - Kasper Kirkegaard, Senior Analyst at Danske Bank, suggested that retracements in the USD/JPY represent opportunities to buy.
Key Quotes
“The JPY got further tailwind this morning as Bank of Japan kept its monetary policy unchanged at its rate-setting meeting, although this was as expected”.
“In line with consensus we still expect the BoJ to deliver further easing measures by the end of this quarter or in the beginning of the third quarter and thus we still target USD/JPY above 110 in the medium to long term”.
“Furthermore, we strongly believe that the BoJ will respond to any significant yen appreciation. Hence, with the ‘BoJ put’ in mind we would consider to buy USD/JPY on dips from here”.
Key Quotes
“The JPY got further tailwind this morning as Bank of Japan kept its monetary policy unchanged at its rate-setting meeting, although this was as expected”.
“In line with consensus we still expect the BoJ to deliver further easing measures by the end of this quarter or in the beginning of the third quarter and thus we still target USD/JPY above 110 in the medium to long term”.
“Furthermore, we strongly believe that the BoJ will respond to any significant yen appreciation. Hence, with the ‘BoJ put’ in mind we would consider to buy USD/JPY on dips from here”.