USD/JPY: Strength towards 108.50 looks to be a good sell – Westpac

Analysts at Westpac Institutional Bank cling to the view that ‘it is only a matter of time before USD/JPY heads lower again’. 

Key quotes

“3m USD/JPY basis turning positive for the first time since 2012, that mission appears to have been fully met.”

“Our view has long been that the news in the US would get much worse before it gets better. As this manifests itself in much weaker US data, that will continue to weigh on UD/JPY.”

“Strength towards 108.50/110 looks to be a good sell on strength.”