Macro FX Ideas: buy EUR/JPY - Westpac

Analysts at Westpac put out a trade-plan suggestion for BUY EUR/JPY.

Key Quotes:

"Entry: Buy 100% at 126.20, Stop: 125.10*, Target: 129.50.

Rationale: 

• Draghi gave a notably more positive speech on the global economy and potential virtuous circle of investment and growth

• Interest rate markets are moving to support EUR with both short and long end yields rising post Draghi's speech

• After a consolidating for two weeks, EUR has regained a generally bid once again

• Banking resolution for failing banks is being taken well and there is now a comfortable pause in regional elections

• Japanese inflation remains well below their 2% target and BoJ policy remains committed to achieving its goal

• The BoJ's July 20th meeting is still sufficiently distant to maintain downside pressure on JPY."