USD/JPY: Buy the dips under 107.50? - Citibank

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.

Key Quotes:

“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.”