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14 May 2015
USD/JPY is a buy on dips play - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch explained that the weaker US retail sales report has weighed modestly on USD/JPY.
Key Quotes:
"The slowdown in US growth is pushing back Fed rate hike expectations into next year. Still long-term US yields have adjusted higher while short-term yields have remained more stable dampening downside risk for USD/JPY."
"However, the recent improvement in Japan’s external account surplus is encouraging USD/JPY selling."
"We expect to see an increase in demand from Japanese investors and firms to buy USD/JPY on any dips towards the 118.00-level."
Key Quotes:
"The slowdown in US growth is pushing back Fed rate hike expectations into next year. Still long-term US yields have adjusted higher while short-term yields have remained more stable dampening downside risk for USD/JPY."
"However, the recent improvement in Japan’s external account surplus is encouraging USD/JPY selling."
"We expect to see an increase in demand from Japanese investors and firms to buy USD/JPY on any dips towards the 118.00-level."