USD/JPY has not been able to break convincingly above 130. In the opinion of economists at Westpac, wider risk-off theme suggests waiting for a break below 128.65 before thinking of buying.

A break above 130 appears just a matter of time

“With the Fed effectively pre-announcing a series of 50bp moves plus record QT, it’s hard to imagine that we have seen the highs, and a break above 130 appears just a matter of time. However, the wider risk-off move in recent sessions may be a factor capping near-term gains, and a break below 128.50 would warn of near-term correction risks.” 

“We would like to buy dips into weakness, but are willing to give the risk-off theme a few days to run here.”