Citigroup: Is USD/JPY A ‘Buy On Dips’ Now ? the bank says

Citigroup: Is USD/JPY A ‘Buy On Dips’ Now ? the bank says

Will US reaction to the BOJ intervention dictate its success?
Citigroup reckons that investors may be overestimating external political concern, especially compared to the trade problems created by the CNY.

“If US authorities simply continue to decline to comment, this is implicitly turning a blind eye to the Japanese action and could serve to disappoint those looking for stronger opposition,” the bank says, suggesting that the intervention may well prove more successful than expected.

The bank recommends “maintaining short JPY positions and dips in USD/JPY associated with lulls in intervention could be opportunities to further build longs.

http://www.Intermoney.org – Market Talk

Wednesday. September 15, 2010