Pullbacks in the pair remain buying opportunities, reiterated Strategist at Westpac Robert Rennie. 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 deceleration, the fact that new orders hit 45.9, a low back to Jan 13 is a real worry”. “We should see this come through in IP and the Tankan, adding another layer of support for more action from the BoJ in April”. “Last week we argued that USD/JPY remained a buy on dips sub 112 though price action was woeful. That poor price action did indeed drive USD/JPY to a fresh low for the move. However, yet again, the pair has rebounded back above 112”. “So stick with the view, buy on dips to and through 112, take profit at 114, run a stop below 110 and repeat as long as necessary! For more information, read our latest forex news.