Strategists at Westpac have reiterated their recommendation of buying the pair on occasional dips. Key Quotes “This week’s weaker than expected Japanese PMI adds to the sense that the industrial sector in Japan is doing it tough. The fact the index hit a 3 year low suggests acceleration – the fact that new orders hit 45.9, a low back to Jan 13 is a real worry”. “This adds another layer of support for more action from the BoJ in April. Markets will thus watch the usual end of month run of data including CPI this Friday, employment plus retail trade next Tuesday and IP next Wednesday”. “Last week we argued that USD/JPY remained a buy on dips sub 112 though price action was woeful. That poor price action has indeed driven USD/JPY lower, but we remain of the view that this dip should be bought. So yet again, buy on dips, but run a stop below 110”. For more information, read our latest forex news.