Citigroup believes there is room for the yen to weaken because Bank of Japan Governor Kazuo Ueda is unlikely to send a more hawkish signal than expected by the market. “We are increasing the 1-month USD/JPY 160.50/162 call option spread,” analysts Daniel Tobon, Osamu Takashima, and Brian Levine wrote. They claimed that the sharp decline in USD/JPY was “in line with the trend seen during the previous intervention period.” Analysts also said, “We think there is room for USD/JPY to rebound tonight and is expected to rise thereafter.”

Citigroup believes there is room for the yen to weaken because Bank of Japan Governor Kazuo Ueda is unlikely to send a more hawkish signal than expected by the market. “We are increasing the 1-month USD/JPY 160.50/162 call option spread,” analysts Daniel Tobon, Osamu Takashima, and Brian Levine wrote. They claimed that the sharp decline in USD/JPY was “in line with the trend seen during the previous intervention period.” Analysts also said, “We think there is room for USD/JPY to rebound tonight and is expected to rise thereafter.”