Citi sees potential for USD/JPY tactical longs amid strong US GDP data

Citi highlighted the Japanese yen’s major support level against the US dollar, noting that the USDJPY pair had maintained its position above the 152 mark.

This level was previously identified as a significant resistance point throughout 2022 and early 2023, and it served as a crucial breakout area in 2024. Additionally, the 200-day moving average (200dma) is positioned just below this threshold at 151.54.

The firm observed that the stronger-than-expected US GDP and Core Personal Consumption Expenditures (PCE) figures released today, coupled with their anticipation of a hawkish Federal Reserve and no change in policy from the Bank of Japan (BoJ), present an attractive risk/reward scenario for investors considering tactical long positions in the USDJPY pair heading into next week.

Citi clarified that this recommendation is tactical in nature, given their broader expectation of a risk-off environment with heightened volatility over the coming months. They suggest that while high volatility can lead to aggressive counter-trend movements, it is also an opportunity to capitalize on.

Looking ahead, Citi anticipates better opportunities to sell the USDJPY pair, which may arise soon. They speculate that a rally to the 55-day moving average (55dma), which stands at 157.75, could offer appealing levels for selling if it materializes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Weekly Overview: MT4/MT5 Disruption in China, IG Group to exit South Africa, and More

    • May 31, 2025
    Weekly Overview: MT4/MT5 Disruption in China, IG Group to exit South Africa, and More

    Brokerage Firm OneRoyal Opens Oman Office in MENA Growth Push

    • May 30, 2025
    Brokerage Firm OneRoyal Opens Oman Office in MENA Growth Push

    What Is Causing the Global Silver Shortage in 2025?

    • May 30, 2025
    What Is Causing the Global Silver Shortage in 2025?

    Hyperinflation in 2025: What Currencies Are at Risk?

    • May 30, 2025
    Hyperinflation in 2025: What Currencies Are at Risk?

    Will the Petro-Yuan Replace the Petrodollar in the Middle East?

    • May 30, 2025
    Will the Petro-Yuan Replace the Petrodollar in the Middle East?

    XAU/USD: Elliott Wave Analysis and Forecast for 30.05.25 – 06.06.25

    • May 30, 2025
    XAU/USD: Elliott Wave Analysis and Forecast for 30.05.25 – 06.06.25