Citi Analysis: Japanese Yen Holds Key Support Level Against USD – Is It Time to Buy?
In a recent report, Citi highlighted the Japanese yen’s major support level against the US dollar, signaling a potential opportunity for investors. The pair has remained above the crucial 152 mark, which was previously a significant resistance point in 2022 and early 2023.
The 200-day moving average (200dma) is also positioned just below this threshold at 151.54, adding to the support level. Citi’s analysis takes into account the latest US GDP and Core Personal Consumption Expenditures (PCE) figures, as well as expectations of a hawkish Federal Reserve and unchanged policy from the Bank of Japan (BoJ).
With these factors in mind, Citi suggests that tactical long positions in the USDJPY pair could be attractive for investors looking ahead to next week. While the recommendation is tactical in nature, given expectations of a risk-off environment with heightened volatility in the coming months, Citi believes that high volatility can present opportunities for investors.
Looking forward, Citi anticipates potential selling opportunities for the USDJPY pair, especially if a rally to the 55-day moving average (55dma) at 157.75 materializes. This could provide appealing levels for selling positions.
In conclusion, Citi’s analysis points to a potential opportunity for investors to consider tactical long positions in the USDJPY pair, with an eye on potential selling opportunities in the future. It is important to stay informed and monitor market developments to make informed investment decisions.