The Citigroup analysts make a case for buying the dips in the USD/JPY pair below 107.50 support area, as they believe the downside doesn’t look more compelling.
“The move lower under support area circa 107.50 last week has not prompted an acceleration lower.
Take back shorts.
USD/JPY tends to focus more on the 10-year yield movement.
But the shorter end of the curve can outperform.
2-year/10-year spread may continue to steepen.”
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