Citigroup analysts Daniel Tobon, Takashima Osamu, and Brian Levine believe that there is room for the yen to weaken because Bank of Japan Governor Kazuo Ueda is unlikely to send a more hawkish signal than expected by the market. “We bought a bullish option spread between USD/JPY at an execution price of 160.50/162 for a 1-month period.” The sharp decline in USD/JPY “is in line with the trend seen during the previous intervention period.” However, “Governor Ueda was unable to send a hawkish signal exceeding market expectations at the Bank of Japan meeting on Friday, which could lead to market disappointment.” “We think there is room for USD/JPY to rebound tonight, and further increases will follow.”

Citigroup analysts Daniel Tobon, Takashima Osamu, and Brian Levine believe that there is room for the yen to weaken because Bank of Japan Governor Kazuo Ueda is unlikely to send a more hawkish signal than expected by the market. “We bought a bullish option spread between USD/JPY at an execution price of 160.50/162 for a 1-month period.” The sharp decline in USD/JPY “is in line with the trend seen during the previous intervention period.” However, “Governor Ueda was unable to send a hawkish signal exceeding market expectations at the Bank of Japan meeting on Friday, which could lead to market disappointment.” “We think there is room for USD/JPY to rebound tonight, and further increases will follow.”