Westpac recommend buying USD/JPY at......>

DOLLAR-YEN: Westpac recommend buying USD/JPY at Y109.15 with a target of Y111.85

and a stop at Y108.65. Westpac highlight the many risk events in play this week.

Going on to state that "USD/JPY is basing in a 109-110 range while US10yr yields

have stabilised in a rough 2.70-2.80% range. Despite obvious fragilities many of

the negatives on the economic data and earnings front have been well

telegraphed. China unlikely to yield to ambitious requests for a fundamental

rewiring of their econ & how they manage it but negotiators likely stress a

"constructive" & "hopeful" tone. FOMC likely to stress newfound patience &

flexibility too; guidance for "some further gradual increases" will be

scrutinised as will balance sheet plans. Fed off'ls seem to be weighing an

earlier than exp. end to the balance sheet run-off (the statement is devoid of

any references but officials have sounded open minded lately, walking back

Powell's "autopilot" signal from the Dec FOMC). Backlog of hard US activity data

and payrolls in coming days likely ignored given contamination from the partial

shutdown. If anything other key data such as Q4 employment cost index & January

average hourly earnings likely underscore tightening labour market conditions."