USD/JPY may bounce in short term – Citi

BoJ’s July 31st meeting pushed USDJPY back to the low 150, Citi’s FX analysts note.

A rally to 157.75 to provide attractive levels

“The BoJ’s July 31st meeting may be seen as ‘live’ for a rate hike and cut in monthly bond purchases. A double hit may well take USDJPY back to the low 150s in very quick time.”

“However, stronger USD GDP and Core PCE figures – along with Citi Analysts’ expectation of no hike from the BoJ in July, this could see USDJPY bounce short-term.”

“At an extreme, a rally to the 55dma (157.75) would provide attractive levels to sell.”