USDJPY: Base may have formed above 99.00 - Westpac

Research Team at Westpac, suggests that they are neutral on JPY as the focus will soon shift to the BoJ (21 Sep) and their available policy levers.

Key Quotes

“Markets are likely to be disappointed if they expect increased JGB purchases; instead we could see increased NIRP, more ETF purchases or reopening the foreign bond debate.

Technical: A base may have formed above 99.00. A sound turn in daily momentum and the dynamic rebound into this week suggest a test declining channel resistance (currently 104.00-25) if not a retest of July's 107.50 high as a broad consolidation forms. A slump below 100.60 would undermine this positive near term profile.”