FXStreet (Edinburgh) - Strategists at Westpac Global Strategy Group underlined the likeliness of a correction lower in the pair.
“With no tangible signs of a diplomatic breakthrough in Ukraine, pressure for the US to escalate military action in Iraq and market liquidity low in August, the risk of a tape-bomb taking USD/JPY lower seems very real”.
“The failure to break 102.90/103.10 and subsequent drop back to around 50/100 day moving averages leaves USD/JPY looking directionless”.
“Our US data surprise index is a healthy 65% but US treasury yields of course have little chance of ramping higher given the geopolitical flash-points”.
“We maintain a wait for dips to buy/ neutral stance for USD/JPY”.