USD/JPY above 155 – Citi cautious of intervention threat

Citi analysts counsel that whereas the USD/JPY could briefly surpass ¥155, any sustained rally within the greenback in opposition to the yen may very well be capped by potential intervention from the Japanese authorities and anticipated price hikes by the Financial institution of Japan.

• USD/JPY breach of ¥155, Citi notes that the Financial institution of Japan could have a stronger incentive to boost charges to zero.5% in its upcoming December assembly to counterbalance yen weak point.

• Regardless of present greenback power, Citi maintains a bearish outlook for the USD/JPY in the long term, suggesting restricted upside for the pair heading into subsequent 12 months.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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