HALISTER1: USD/JPY Upside Limited to 108 Even If BOJ Eases: Citigroup

USD/JPY Upside Limited to 108 Even If BOJ Eases: Citigroup

(Bloomberg) -- Even if BOJ does decide to strengthen its monetary-easing program, the upside for USD/JPY would be limited at around 108, Citigroup FX strategist Osamu Takashima, writes in note today.
  • USD/JPY may return to a 100–105 range in coming weeks, writes Takashima
    • USD/JPY last touched 108.00 on June 3, closing at 106.53 that day
  • BOJ seen cutting policy rate to -0.3%, from 0.1% and expanding annual ETF purchases to JPY5t-JPY6t, according to Citi research analysts
  • Policy rate may be reduced further to -0.5% by 3Q 2017, which will mark its lower boundary
  • Japan’s government and BOJ probably want to give the impression to market participants that they are coordinating closely with each other, says Citi
  • USD/JPY up 0.3% to 107.22
  • Related story: USD/JPY to drop more than 3% if BOJ leaves policy unchanged, Citigroup global FX survey
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Osamu Takashima (Citigroup Inc)

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