USDJPY SIGNAL 31-03-22 : USDJPY 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.

USDJPY SIGNAL : 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.

USDJPY SIGNAL : 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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