Robert Rennie, Strategist at Westpac, has recommended buying spot on dips to the 112.00 area. Key Quotes “Last week we argued that USD/JPY was a buy on dips to 112 with a stop below 110”. “We were surprised by the lack of commentary from MoF/ BoJ officials through last week, though the level of concern certainly rose Friday”. “We have started to see some signs that Japanese households/ balance sheets have started to react to NIRP and a strong ¥ (though today’s weekly MOF data is disappointing)”. “The combination of modest Japanese demand plus a run of better US$ tells us to stick with our buy view for another week”. For more information, read our latest forex news.