Strategists at Westpac consider pullbacks towards the 112.00 handle as buying opportunities. Key Quotes “With the BoJ meeting behind us there is a keen sense that the BoJ is watching emerging markets closely, though somewhat bizarrely they describe private consumption as “resilient” which seems hard to justify given recent HH expenditure data, etc”. “Thus it looks like this week's meeting bought some time while the board addressed technical issues (e.g. money market fund deposit rates)”. “We are veering towards calling for more QE from the BoJ next month and if Japan follows the lead from China, Korea and Taiwan then weak Feb export data should add to those thoughts”. “Thus, we stick with the same bias for another week. Price action is not compelling and USD/JPY has yet again failed above 114. However, it continues to look fundamentally mispriced here and it is just a matter of time before we break 114/116. Thus we carry on buying dips below 112, but with stops below 110”. For more information, read our latest forex news.