USD/JPY: Positive stance for the week ahead - Westpac

Robert Rennie, Research Analyst at Westpac, explains that having been neutral for the last couple of weeks, they shift back to a positive stance for the week ahead on USD/JPY.

Key Quotes

“Excessive long positioning would arguably have been culled somewhat on recent weakness below 111.70 and the fact that we avoided fresh lows on the N Korea ICBM this week adds some weight to that view.”

“The better than expected Q3 GDP in the US and prospects of more to come in Q4, a positive update from Yellen and likely success of the tax bill in navigating Senate procedural hurdles all argue for some upside on USD/JPY.”

“Bottom line, a positive view for the week ahead and into the end of the year as US data momentum likely supports the US$.”