USD/JPY is well supported on dips - Westpac

Robert Rennie, Research Analyst at Westpac, suggests that USD/JPY is well supported on dips at 110 as the foundation appears to be in place for US$ stability on the basis that the dollar is technically oversold.

Key Quotes

“Trump expectations appear low and the significant easing in financial conditions suggests an improvement in data momentum.”

“While US$ is not technically as oversold as for instance against the euro, we have avoided fresh lows and while yield support remains limited, Japanese demand for foreign assets remains strong.”