USD/JPY: Three ways by which the yen may be able to halt its slide – Citibank
|Will Japan’s MoF/BoJ halt yen’s slide? In the view of economists at Citibank, there are 3 ways by which the Japanse yen may be able to halt its slump.
US Treasury yields may enter a period of consolidation
“UST yields enter a period of consolidation – there may be some hint of this in the brief UST 2-10Yr curve inversion seen in Monday’s session and as the UST curve as a whole rapidly approaches a flattening bias which may be a signal that US yields are close to topping out.”
“Political pressure on the BoJ from the Kishida government ahead of Japan’s upper house elections in July – unlikely for now given recent comments from the PM and his cabinet colleagues.”
“Criticism from the US Treasury as JPY REER trades at historical lows – unlikely for now given the current heightened geopolitical tensions require Japan’s political support for the US against Russia.”
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