Citi highlighted the Japanese yen’s main help stage in opposition to the US greenback, noting that the pair had maintained its place above the 152 mark.

This stage was beforehand recognized as a major resistance level all through 2022 and early 2023, and it served as a vital breakout space in 2024. Moreover, the 200-day shifting common (200dma) is positioned just under this threshold at 151.54.

The agency noticed that the stronger-than-expected US GDP and Core Private Consumption Expenditures (PCE) figures launched at the moment, coupled with their anticipation of a hawkish Federal Reserve and no change in coverage from the Financial institution of Japan (BoJ), current a lovely threat/reward situation for buyers contemplating tactical lengthy positions within the USDJPY pair heading into subsequent week.

Citi clarified that this advice is tactical in nature, given their broader expectation of a risk-off surroundings with heightened volatility over the approaching months. They counsel that whereas excessive volatility can result in aggressive counter-trend actions, it is usually a possibility to capitalize on.

Wanting forward, Citi anticipates higher alternatives to promote the USDJPY pair, which can come up quickly. They speculate {that a} rally to the 55-day shifting common (55dma), which stands at 157.75, might supply interesting ranges for promoting if it materializes.

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